Ethical Dilemma, Profitability Versus Social Conscience (effects of cost

Ethical Dilemma, Profitability Versus Social Conscience (effects of cost behavior)

1. Read the Ethical Dilemma, Profitability Versus Social Conscience (effects of cost behavior), on p. 790 in Fundamental Financial & Managerial Accounting Concepts. Did Mr. Borrough’s decision violate any of the Standards of Ethical Conduct for Management Accountants in Exhibit 14.13 on p. 712? If so, which code did he violate? Do you believe this practice is ethical? Why or why not?
2. Read the Reality Bytes section on p. 797 in Fundamental Financial & Managerial Accounting Concepts. For what other business decisions may it be impossible to calculate the actual cost? What are some of the dangers of basing decisions on estimated rather than actual costs? How might these dangers be minimized?
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