Description
During this week you will be reading about applying overhead costs to a job or batch.
Problem (attached) has a great ethical issue around the under application of manufacturing overhead. Please read the scenario presented in that problem. Then in your post answer the two questions posed.
Question #1 asks you for each of the tree alternative courses of action that Jackson is considering, explain whether or not the action is appropriate.
For question #2 assume that Jackson again approaches Brown to make the necessary adjustments and is unsuccessful. Describe the steps that Jackson should take in proceeding to resolve this situation.
Submission Details:
- Be sure to cite any sources you use in your post.
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Explanation & Answer
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1
Costing and Management
Students Name
Institutions Affiliations
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Costing and Management
Q. 1
Jackson has three options to consider from the case study given. First, he can choose to
follow Brown’s directive and do nothing further. However, this action is inappropriate because it
goes against professional and ethical requirements that Jackson should abide by. According to
the standards of ethical conduct for accountants, the accountants should have integrity,
competence, and ethical objectivity conduct (Hansen, Mowen & Heitger, 2021). Integrity
requires that the accountants will refrain from activities that undermine the organization’s ethical
objectives. They should also n...