Description
The assigment is to evaluate the ethical case of Scott Hopkins at ABC Manufacturing. The teacher would like to know:
What the ethical dilemma is (introduction with the facts given)
Who the benefiting party is and how the are affected.
Who the harmed parties are and how they are affected.
What resources can be used to make a better informed decision.
What the alternatives could be-can be ones that would not be recommended and how the recomendations would affect the parties.
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Explanation & Answer
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Ethical Dilemma
Student’s Name
University Affiliation
Course Name and Course Number
Instructor’s Name
Date of Submission
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Re: ABC Manufacturing Plant’s Ethics Case of Cost Classification
Dilemma
The ethical dilemma in the ABC Manufacturing plant is identifying a better operating income
number by the plant’s new manager. The primary reason behind the ethical dilemma is that ABC
Manufacturing plant classifies its costs as directly related to their manufacturing of products as
product costs. In this case, the dilemma arises when they inventory the costs and expense them
afterward as cost of goods sold after making sales to the products. On the other hand, the plant's
expenses, all-inclusive of the finished goods warehouses costs, are termed as period expenses
making their decision more complicated. However, the new plant's manager's decision to include
warehouse costs expenses as product...