Professional ethics and reporting division performance. Marcia M 1 answer below »Professional ethics and reporting division performance. Marcia Miller is division controller and Tom Maloney is division manager of the Ramses Shoe Company. Miller has line responsibility to Maloney, but she also has staff responsibility to the company controller Maloney is under severe pressure to achieve the budgeted division income for the year. He has asked Miller to book $200,000 of revenues on December 31. The customers' orders are firm, but the shoes are still in the production process. They will be shipped on or around January 4. Maloney says to Miller, ?oThe key event is getting the 谢谢亲的回惠顾，期待您的下次光临！ 添加客服微信:bbwxnly，购买沟通交流so easy 欢迎咨询以下我们的一站式服务内容：查题｜解锁｜帐号包月 Coursehero｜Scribd｜Studymode｜Oneclass｜Chegg｜Studyblue｜Termpaperwarehouse｜SolutionInn｜Bartleby｜eNotes｜Bookrags｜SaveMyEaxms｜Study.com｜Studypool｜QuillBot｜and more… 谢谢亲的支持，祝您学习愉快:) |
1 Approved Answer
Solution:
1.
Miller's ethical responsibilities are well summarized in the IMA's "Standards of Ethical Conduct for Management Accountants" (Exhibit 1-7 of text). Areas of ethical responsibility include the following:
The ethical standards related to Miller's current dilemma are integrity, competence and credibility. Using the integrity standard, Miller should carry out duties ethically and communicate unfavorable as well as favorable information and professional judgments or opinions. Competence demands that Miller perform her professional duties in accordance with relevant laws, regulations, and technical standards. Credibility requires that Miller report information fairly and objectively. Miller should refuse to book the $200,000 of sales until the goods are shipped. Both financial accounting and management accounting principles maintain that sales are not complete until the title is transferred to the buyer.
2.
Miller should refuse to follow Maloney's orders. If Maloney persists, the incident should be reported to the corporate controller. Support for line management should be wholehearted, but it should not require unethical conduct.