60.1K

Verified Solution

Link Copied!

CRITICAL THINKING Ethics Case he cost accountant for Hi-Power Mower Company, recently installed aci 2-horsepower Quickcut, and the 18-horsepower Supercut--are activity 8-horsepower Bla iPower's St. Louis lawn tractor (riding mower) plant where three 8-horsepower Bladerunner the 1 models-t ased costing at Hi-Power's St. Louis lawn tractor (riding mo man- s new product costs for these three models show that the company's traditi ntly undercosting the 18-horsepower Supercut. This was due costing system had been significa pri marily to the lower sales volume of the Supercut compared to the Bladerunner and the Quickcut Supercut Before completing his n by his friend analysis and reporting these results to management, Curtis is a Ed Gray who is the production manager for the 18-horsepower Supercut model. Ed eard from one of Curtis's staff about the new product costs and is upset and worried for his job because the new c osts show the Supercut to be losing, rather than making, money. Broadening Your Perspective t, Ed condemns t ing and why it is more accurate than the company's present system. 181 t first, base pd begs Curtis, "Massage the figures just enough to save the line from being discontinued. You oW want me to lose my job, do you? Anyway, nobody will know." he new cost system, where upon Curtis explains the practice of activity more accurate than the company's present system. Even more worried now Curtis holds firm but agrees to recompute all his calculations for accuracy before submitting his costs to management. Instructions Who are the stakehalders in this situation? What are Curtis's ethical obligations to the company? To his friend? (b) What, if any, are the ethical considerations in this situation

Answer & Explanation Solved by verified expert

See Answer