Solved by verified expert :Unit 2: Introduction to Job Costing, Activity Based
Costing, Process Costing and Customer Profitability Analysis. – Discussion 1
Instructions:
After you have read the articles
above, please post a substantive response to the questions after reading the
scenario.
Scenario:
Kim
Cidvak is a consultant for one of the largest public accounting firms. He has
been called in to review compliance documentation regarding human rights
violations at Nogle Manufacturing Conglomerate’s contracted overseas
manufacturing operations in China. The contracted manufacturing operation has
workers using equipment that must be handled carefully by trained personnel and
in the U.S. requires the expensive safety equipment to be worn at all times.
Reading the existing report from the Human Resources executive sent there to
prepare it, Kim notices there is no report concerning safety compliance just
simply training hours, and hours worked on shift.
Questions:
What are the risks and who are
the affected stakeholders? What actions would you take as Kim in this
situation and why?
What ethical responsibilities
do Kim and the accounting firms have versus Nogle Manufacturing
Conglomerate and the contracted manufacturer? What are the considerations
in terms of the financial implications versus the ethical ones and for
whom do these apply? Explain your reasoning.
Unit 2: Introduction to Job Costing, Activity Based
Costing, Process Costing and Customer Profitability Analysis. – Discussion 2
Topics
Risk and Ethical
Responsibility
Risk and Ethical Responsibility
Using the same articles and scenario as in Discussion 1,
address the Discussion 2 topic below.
Minnie Lee is an engineer with a multi-national aerospace
company that produces fuel-line components for all types of air and space
craft. Minnie discovered a potential defect in a particular fuel-line
component. Minnie is the lead-engineer for this particular division and
scheduled tests that would indicate the failure potential for the component.
The tests indicated a very low risk that at certain very low, or very high
temperatures, the component might fail, which in turn might lead to a
catastrophic failure of the entire system.
· What ethical responsibilities do Minnie and the
companies have? For example, should the decision to repair the system be
considered in terms of the potential liability risks of failure versus the
costs of the repairs?
