Do agree with mr jerry comments

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Mr. Jerry (marketing manager) approaches Mr. Tarmizi (accountant) suggesting for accounting entries to be made so that some of the overhead charges are reduced or shifted away, if necessary, should the proposed activity based costing system be implemented. Mr. Jerry recommends that the accounting entries be made in such a way so that he is entitled to annual salary bonus. Mr. Jerry and Mr. Tarmizi are family friends. In fact, World Furniture company recruited Mr. Tarmizi three years ago based on the strong recommendations of Mr. Jerry. This situation places Mr. Tarmizi in dilemma between being a good accountant or being a good friend.

Question 1: Do you agree with Mr. Jerry comments? Explain your answer. Suggest how Mr. Tarmizi should proceed with the adoption of activity based costing system.

Reference no: EM132562342

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