Ethics Case ( Managerial Accounting )

Ethics Case ( Managerial Accounting )

Please answer the questions below

A 4-55

A 6-75

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A4 55

In any company, the corporate social responsibility is a great part of the operations and should be put into considerations while making decisions. However, in the Sparkle case, Jacob decides to hide it under the production costs knowing that the disposal of waste takes up many costs just to protect Mitchell’s division. The compromising of the social responsibilities for the sake of profits is not ethically accepted under the IMA principles as it undermines the position of the business in the environment. The fact that this activity-based costing is excluded from the external financial reports does not mean that Jacob’s actions are justified. He has still violated the basic codes of ethics by putting profits and personal relationship with Mitchel while making a crucial decision like disposal of waste.

(587 words)