Ethics in Management Accounting - 2322 Words

ASSIGNMENT ON ASSURANCE OF LEARNING – ETHICS IN MANAGEMENT ACCOUNTING (CMA) Awoluyi Adekunle, Matric Number: 201403007 JUNE 29, 2015 MEMBA 3 LBS, Lagos AWOLUYI ADEKUNLE Matric Number: 201403007 Introduction The source of cost management ethical problems in any organization can be one or more of the following; 1. 2. 3. 4. Organisation’s management expectation Vs. professional ethics Personal desire for recognition / and promotion within the company Strife for quick money or cash Personal commitment or colleagues commitments In view of this, certain steps are required to be taken to ensure that strict adherence to business ethics is promoted within every organization. Several professional bodies have tried†¦show more content†¦It is important to note that all the information used by Wessling was deduced from the information generated by the Accounts department. Which reflects that the department have the required information to embark on adequate analysis for decision making in the company. Information gathered from the account’s department analysis was not sufficient enough to have made the decision made by Paul Hanson. Product 103 have more market share (10%) than any other product the company produces, a well-informed accountant would have taken the pain to further analyse and discuss the cost elements with the respective department to ensure that the organization either maintains its position in the market or improve it while remaining profitable. The effect of discontinuing Product 103 includes; 1. Loss of job to most factory workers – the possibility of Hanson to redeploy workers on product 103 to other lines maybe almost impossible, especially if the production line is saturated. AWOLUYI ADEKUNLE Matric Number: 201403007 2. Loss of Contribution Margin – the contribution margin of Product 103 would have also being lost and recovery of apportioned fixed cost would have no longer been feasible based on the discontinuation of the product. Generation Evaluation of Various Alternatives to address the ethical challenges More importantly in Hanson, the company needs to; 1. Engage a competent and well-seasoned cost accountant who canShow MoreRelatedManagement Accounting : Code Of Ethics1588 Words   |  7 PagesManagement Accountants’ Code of Ethics A code of ethics is necessary for the success of any type of business whether it be a professional service organization such as a law firm or an accounting firm, a manufacturing company such as Chrysler, Toyota, Apple or Microsoft, or a retail company such as Walmart or Target. Within each type of organization lie various types of services that are governed or controlled by a specific set of standards and code of ethics. 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