negotiating with other vendors about a purchase decision. The payment of expenses for the trip constitutes a gift that could appear to influence their purchase decision. Pros of attending user meeting (a) Opportunity to learn more about Pinnacle’s software products. (b) Opportunity to interact with other possible purchasers and get their opinions. (c) Opportunity to influence the future product development plans of Pinnacle in a way that will benefitPrakash& Sons. An example is Pinnacle subsequently developing software modules tailored to food product companies. (d) Saves Prakash& Sons’ money. Visiting suppliers and their customers typically cost money, whereas Pinnacle is paying for the Hong Kong conference. Cons of attending (a) The ethical issues raised in requirement 1. (b) Negative morale effects on other Prakash& Sons employees who do not get to attend the Hong Kong conference. These employees may reduce their trust and respect for Marks’ judgment, arguing she has been on a vacation.’ ‘supplier-paid Conditions on attending that Prakash& Sons might impose (a) Sizable part of that time in Hong Kong has to be devoted to business rather than recreation. (b) Decision on which Prakash& Sons executive attends is not made by the person who attends (this reduces the appearance of a conflict of interest). (c) Person attending (Marks) does not have final say on purchase decision (this reduces the appearance of a conflict of interest). (d) Prakash& Sons executives go only when a new major purchase is being contemplated (to avoid the conference becoming a regular ‘vacation’). 3. The company does not need its own code of ethics. They can use the code of ethics developed by the CIMAthe CIMA’s code of ethics for professional management accountants which can be found at: . Pros of having a written code The Conference Board outlines the following reasons why companies adopt codes of ethics: (a) Signals commitment of senior management to ethics. (b) Promotes public trust in the credibility of the company and its employees. (c) Signals the managerial professionalism of its employees. (d) Provides guidance to employees as to how difficult problems are to be handled. If adhered to, employees will avoid many actions that are unethical or appear to be unethical. (e) Drafting of the policy (and its redrafting in the light of ambiguities) can assist management in anticipating and preparing for ethical issues not yet encountered. Cons of having a written code
negotiating with other vendors about a purchase decision. The payment of expenses for the trip constitutes a gift that could appear to influence their purchase decision. Pros of attending user meeting (a) Opportunity to learn more about Pinnacle’s software products. (b) Opportunity to interact with other possible purchasers and get their opinions. (c) Opportunity to influence the future product development plans of Pinnacle in a way that will benefitPrakash& Sons. An example is Pinnacle subsequently developing software modules tailored to food product companies. (d) Saves Prakash& Sons’ money. Visiting suppliers and their customers typically cost money, whereas Pinnacle is paying for the Hong Kong conference. Cons of attending (a) The ethical issues raised in requirement 1. (b) Negative morale effects on other Prakash& Sons employees who do not get to attend the Hong Kong conference. These employees may reduce their trust and respect for Marks’ judgment, arguing she has been on a ‘supplier-paid vacation.’ Conditions on attending that Prakash& Sons might impose (a) Sizable part of that time in Hong Kong has to be devoted to business rather than recreation. (b) Decision on which Prakash& Sons executive attends is not made by the person who attends (this reduces the appearance of a conflict of interest). (c) Person attending (Marks) does not have final say on purchase decision (this reduces the appearance of a conflict of interest). (d) Prakash& Sons executives go only when a new major purchase is being contemplated (to avoid the conference becoming a regular ‘vacation’). 3. The company does not need its own code of ethics. They can use the code of ethics developed by the CIMAthe CIMA’s code of ethics for professional management accountants which can be found at: . Pros of having a written code The Conference Board outlines the following reasons why companies adopt codes of ethics: (a) Signals commitment of senior management to ethics. (b) Promotes public trust in the credibility of the company and its employees. (c) Signals the managerial professionalism of its employees. (d) Provides guidance to employees as to how difficult problems are to be handled. If adhered to, employees will avoid many actions that are unethical or appear to be unethical. (e) Drafting of the policy (and its redrafting in the light of ambiguities) can assist management in anticipating and preparing for ethical issues not yet encountered. Cons of having a written code
Solution-Manual-for-Cost-Accounting-a-Managerial-Emphasis-2nd-Australian-Edition-by-Horngren.docx