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  1. Ethic is a crucial part if a business is to successed. This is due the codes of ethics or conducts that are expected to be followed by the accounts, which if violated can lead to mismanagements of the business resources (W.Hilton, 2008). The main function of managerial ethic is to ensure that all the financial information about a business are reported to the owners, the directors and the managers of the business. The business owner must be in constant awareness of how their business is progressing. The owner needs that kind of information irrespective of whether the business is making a profit or not. These kind of information is relevant especially when the operational process of the business is been reviewed or when making critical but important decision, such as introducing a new range of product. According to the Institute of Management Accountants (IMA) all the licensed and non-licensed accounts are expected to uphold the primary principal set by Institute of Management Accountants. These principal are honesty, responsibility, objectivity and fairness.
  2. For this case, the stake holders include Hi-Power Mower Company, management of the company, Marcus Lim and Ray Pon.The Company is affected positively since it making high sales with the 8-horsepower Bladerunner and the 12-horsepower Quickcut compared to the low sales volume of the 18-horsepower Supercut. On the other hand, Marcus, who is the cost accountant to Hi-Power Mower Company, has some positive impact on the company. This is evident from the successive report he has on his company regarding the new installed models. Ray Pon is the other stakeholder and it so unfortunate due to the fact that the model he has been working with had a lower sale volume. This might mean that he is at the risk of losing his employment (“Massage the figures just enough to save the line from being discontinued. You don’t want me to lose my job do you?  Anyway, nobody will know.”).The management of the company is affected positively, since the report generated by Marcus clearly indicate the production sales, this can enable to make rational decision about the company.
  3. The ethical obligation that Marcus has to his company is to give the actual information concerning the business. This implies that he should be honest, objective and responsible just as expected by the Institute of Management Accountants(IMA) .On the other hand, Marcus should be fair to his friend who stand a chance of losing his job due to what he had conducted on his research. This obligation is seen since he assures his friend that he will recomputed his calcutation,just to be sure before he submit the report to the management.
  4. If Marcus would choose to help his friend and save him his job, then he run the risk of going against the  core standards of the Institute of Management Accountants(IMA). These standards that could be broken by him include integrity-which clearly warns accountants against engaging in any unethical circumstance that that affect the business negatively, and credibility, which refer to the aspect of relying all the information about the progress of the business fairly to all the stakeholders. These standards will be broken by him since he would be trying to save his friend career thus, misinforming the other stakeholders.
  5. For Marcus to h help his friend, he must come up with another innovative idea that would boost the sale of 18-horsepower Super cut. Since, it the low sales in it that is making his friend Ray Pon to be in that kind of a problem. While as he is helping, he should not forget the core principals and standards that are expected to be maintained by him.

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