Reference no: EM13492981
Emma Hanks, manager of a division that produces valves and castings on a special order basis, was excited about an order received from a new customer. The customer, a personal friend of Bob Johnson, Emma's supervisor, had placed an order for 10,000 valves. The customer agreed to pay full manufacturing cost plus 25 percent. The order was timely since business was sluggish, and Emma had some concerns about her division ability to meet it targeted profits. Even with the order, the division would likely fall short in meeting the target by at least $50,000. After examining the cost sheet for the order, however, Emma thought she saw a way to increase the profitability of the job. She reached for the phone to call her division controller, Lenny Cabot, CMA.
A few minutes later, Lenny met Emma in her office. Emma explained her plan to increase the profitability of the valve job. As currently written, the cost sheet reflected an allocation of maintenance costs to the Grinding Department based on maintenance hours used. In fact, sixty percent of maintenance costs were allocated to Grinding on that basis. But suppose that machine hours were used as the allocation base instead of maintenance hours? Then the allocation ratio would increase from 60% to 80%. This change would result in an increase of $10 per unit of the job. With the 25 percent markup, the revenues on that job would jump by $12.50 per unit increasing the profitability of the division by $125,000. At that point, Emma asked Lenny to change the allocation base from maintenance hours worked to machine hours.
莱尼（Lenny）短暂抗议，指出已经花费了大量时间来评估因果关系。他和管理团队发现，维护时间反映了维护的消费比beplay ued回归机器时间好得多。他担心更改不会导致成本分配。最后，他提醒艾玛（Emma），维护时间已被用作维护成本的分配基础已有几年了。
Emma brushed aside Lenny protests, saying that allocations are arbitrary anyway. She pointed out that changing the allocation base for this new job would increase the profitability and allow their division to meet targeted profit goals for the year. Their ability to get the capital they needed to expand the business depended upon meeting profit goals, as did their likelihood of receiving year-end bonuses. She also reminded him that the new customer had a prosperous business and could easily afford to pay somewhat more for this order.
1. Evaluate Emma's position. DO you agree with her reasoning? Explain. What should Emma do?
我的答案：不。我不同意艾玛的推理，因为为了获得目标分区利润并获得奖金而改变维护成本的分配方法是不道德的。
As there is no direct relationship between maintenance costs and direct machine hours, it is unethical to charge heavy price simply because the customer is willing to pay cost plus 25%. If the customer come to know about the other companies willing to sell the product at a lower rate, he will switch over and Emma might eventually lose the customer. Furthermore, Emma, being a manager of a division, has to act in accordance with the standards of ethical conduct where in this case would be integrity.
艾玛必须考虑公司的长期增长，而不是她可以获得的短期利润。艾玛还应该练习基于活动的成本，并研究获得客户信任的方法。
2.如果您是控制器，您会怎么做？管理会计师的道德行为标准是否适用于控制器？
我的答案：如果我是控制者，我不同意艾玛的意见，我将继续接受新订单，并以当前的系统将成本分配给磨削部门，并且价格将根据该费用确定。
是的，管理会计师的行为标准也适用于控制者Lenny。
莱尼是一个部门控制器以及certified management accountant (CMA) and as shown in the case. This certificate indicates that the holder has demonstrated competency of technical knowledge required by the IMA in management accounting and financial management. IMA has issued a Standard of Ethical Conduct for Practitioners of Management Accounting and Financial Management. Practitioners of management accounting and financial management have an obligation to the public, their profession, the organizations they serve and themselves to maintain the highest standards of ethical conduct. Therefore, standards of conduct for management accountants apply to Lenny as well.
3. Suppose Lenny refused to change the allocation scheme, Emma then issued the following ultimatum: "Either change the allocation or look for another job!" Lenny then made an appointment with Bob Johnson and disclosed the entire affair. Bob however was not sympathetic. He advised Lenny to do as Emma had requested, arguing that the request represented good business sense. Now what should Lenny do?
4.请参阅要求3. Lenny决定他不能遵守更改分配方案的请求。对高级官员的呼吁徒劳无功。莱尼（Lenny）愤怒地提出了辞职，并称新客户受到成本的重新分配影响。Lenny在他的电话交谈中透露了艾玛（Emma）计划增加工作成本以提高该部门利润的计划。新客户表示感谢，并立即取消了她对10,000个阀门的订单，评估了Lenny的行动。他应该告诉客户艾玛的意图吗？解释。