Research on Managerial Accounting Ethical Issues - 1827 Words

While I was looking for an appropriate topic for research, I found an interesting publication, which fitted best to the subject (ethics in managerial accounting issues) and also included 5 good examples examples of possible problems associated with the field. The method of the study seemed unclear, especially considering the connection between the serial number of a dollar bill and the question to which the respondent had to answer in the end (in my work I will constantly refer back to the text, and in the end there will be a link to the document for review), though the examples given in the text seem to be really appropriate. Here’s the info about these 5 issues and the first one given: â€Å"The five issues selected for study all come from†¦show more content†¦armed forces under cost-plus contracts. They note that if the manufacturer â€Å"could shift indirect costs away from (fixed-price) commercial customers and to the cost-plus contracts,† then the manufacturer would increase its revenues.† Maybe it’s not the best example of ethical problem because it doesn’t violate nor GAAP, neither any agreements with purchasers, but it’s still a question of ethics, especially some aspects of just price theory (it’s a theory of ethics in economics that sets standards of fair transactions. It came from ancient Greek philosophy, it was based on an argument against usury, which in that time referred to the making of any rate of interest on loans.) As for me, it’s not a real problem nowadays. Issue #3 looks like: â€Å"Issue #3: Estimating Equivalent Units The third issue involves a misrepresentation about an estimate that has an impact on the reported profit. In slightly different contexts dealing with budgeting situations, the studies mentioned earlier have shown that when a subordinate’s information is used as a basis for his performance evaluation, the subordinate has incentives to misrepresent information. This phenomenon is tested in Issue #3, which involves estimating the percentage of completion of ending work in process inventory in a process costing situation. By overestimating the degree of completion, aShow MoreRelatedThe Changing Role of Managerial Accounting in a Dynamic Business Environment1723 Words   |  7 PagesCHAPTER 1 THE CHANGING ROLE OF MANAGERIAL ACCOUNTING IN A DYNAMIC BUSINESS ENVIRONMENT Learning Objectives 1. Define managerial accounting and describe its role in the management process. 2. Explain four fundamental management processes that help organizations attain their goals. 3. List and describe five objectives of managerial accounting activity. 4. 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