Aa Managerial Accounting for Managers 4th Edition nagerial Acceunting for Muanag

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Aa Managerial Accounting for Managers 4th Edition nagerial Acceunting for Muanagers ah Edtion Chapter 1 Requlred I. How would you feel ahout being yelled at for taking 13 minotes to unload 150 pieces of leggage? 2. How does this scenario relate to the larger issee of how companies design control systems? EXERCISE 1-3 Decision Making Exhibit 1-2 inclodes 12 questions related to 12 types of decisions that companies often face. In the chapter, these 12 decisions were discussed within the context of for-profit companies; however they are also readily applicable to nooprofit organizations. To illustrake this point, assume that you are a senior leader, such as a president, provost, or dean, in a university setting Required be applicable to a university setting. EXERCISE 1-4 Ethics and the Manager For each of the 12 decisioes in Exhibit 1-2, provide an example of how that type of decision might Richmond, Inc, operates a chain of 44 department stores. Two years ago, the board of direc- tors of Richmond approved a large-scale remodeling of its stores to attract a more upscale clientele. Before finalizing these plans, two stores were remodeled as a test. Linda Perlman, assistant controller, was asked to oversce the financial reporting for these test stores, and she and other management personnel were offered bonuses based on the sales growth and profitability of these stores. While completing the financial reports, Perlman discovered a sizable inventory of outdated goods that should have been discounted for sale or returned to the manufacturer. She discussed the situation with her management colleagues; the consensus was to ignore reporting this invensory as obsoletc because reporting it would diminish the financial results and their bonuses Required I. According to the IMA's Statement of Ethical Professional Practice, would it be ethical for Perlman now to report the inventory as obsolete? 2. Would it be easy for Perlman to take the ethical action in this situation? (CMA, adapted) EXERCISE 1-5 Strategy The table below contains the names of six companics Required For cach company, categorize its strategy as being focused on customer intimacy, operational excellence, or product leadership. If you wish to improve your understanding of each company's customer value proposition before completing the exercise, review its most recent annual report To obtain electromic access to this information, perform an Internet search on each company's name followed by the words "annual report. Strategy 1. Deere 2 FedEx 3. State Farm Insurance 4. BMW 5. Amazon.com 6. Charles Schwab

Explanation / Answer

Exercise 3-4

1. No, it is not ethical for Perlman to report the inventory as obsolete as it would violate IMA's Statement of Ethical Professional Practice.

IMA's Statement of Ethical Professional Practice have a responsibility to comply with the standards of Competence, Confidentiality, Integrity and Credibility.

2. I think he should discuss this with his manager and clarify on the ethical issues.

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