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Chapter 16: Q16-2SE-e (page 885)

The Institute of Management Accountants’ Statement of Ethical Professional Practice requires managerial accountants to meet standards regarding competence, confidentiality, integrity, and credibility. Consider the following situations. Which standard(s) is(are) violated in each situation?

e. You do not provide top management with the detailed job descriptions they requested because you fear they may use this information to cut a position in your department.

Short Answer

Expert verified

The ethical standard violated, in this case, are credibility and integrity.

Step by step solution

01

Definition of IMA

IMA standards for the Institute of Management Accountants is one of the top associations of professionals in the finance field.

02

Identification of violated ethical standards

The correct option is credibility and integrity standard.

In this case, failing to provide the top management of the company with a detailed description of the job information is a violation of the credibility standard.

If the reason for not providing the correct information to the management is to lose the position, then the standard of integrity is violated.

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Most popular questions from this chapter

Making ethical decisions

Sue Peters is the controller at Vroom, a car dealership. Dale Miller recently has been hired as the bookkeeper. Dale wanted to attend a class in Excel spreadsheets, so Sue temporarily took over Dale’s duties, including overseeing a fund used for gas purchases before test drives. Sue found a shortage in the fund and confronted Dale when he returned to work. Dale admitted that he occasionally uses the fund to pay for his own gas. Sue estimated the shortage at $450.

Requirements 1. What should Sue Peters do?

Question:Gateway produces electronic calculators. Suppose Gateway’s standard cost per calculator is \(25 for direct materials and \)68 for conversion costs. The following data applyto August activities:

Direct materials purchased (on account) \( 8,300

Conversion costs incurred 20,500

Number of calculators produced 300 calculators

Number of calculators sold (on account, at \)105 each) 295 calculators

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1. Prepare summary journal entries for August using JIT costing, including the entryto adjust the Conversion Costs account.

2. The beginning balance of Finished Goods Inventory was $1,300. Use a T-accountto find the ending balance of Finished Goods Inventory.

Identifying ethical standards

The Institute of Management Accountants’ Statement of Ethical Professional Practice requires managerial accountants to meet standards regarding competence, confidentiality, integrity, and credibility. Consider the following situations. Which standard(s) is(are) violated in each situation?

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Identifying product costs and period costs Classify each cost of a paper manufacturer as either a product cost or a period cost:

i. Life insurance on the CEO.

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For each of the following, indicate whether the statement relates to managerial accounting (MA) or financial accounting (FA):

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