University of the Cumberlands Business Case Study

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QZ03

Business Finance

University of the Cumberlands

Description

  1. case study Topic:1-33: Disclosure of Confidential Information; Ethics; Software Developer
  2. A) prepare a word document and a PowerPoint presentation of the solutions to the Case Study utilizing the following Structure:
    1. Briefly provide an Overview of the case study facts
    2. Identify and describe the Managerial Accounting Topic
    3. Briefly identify the Requirements in the case study
    4. Provide the Solutions to the requirements in the case study
    5. Provide Personal Thoughts regarding major learning points from the case study
  3. Note: attached case study document.
  4. strictly No plagiarism, please

textbook for reference:Title: Managerial Accounting

ISBN: 9781260696233

Authors: Hilton

Publisher: MCG

Edition: 12TH 20

Unformatted Attachment Preview

Case Study 1-33: Disclosure of Confidential Information; Ethics; Software Developer Progressive Applications Corporation, a developer and distributor of business applications software, has been in business for five years. The company’s main products include programs used for list management, billing, and accounting for the mail order shopping business. Progressive’s sales have increased steadily to the current level of $25 million per year. The company has 250 employees. Andrea Nolan joined Progressive approximately one year ago as accounting manager. Nolan’s duties include supervision of the company’s accounting operations and preparation of the company’s financial statements. No one has noticed that in the past six months Progressive’s sales have ceased to rise and have actually declined in the two most recent months. This unexpected downturn has resulted in cash shortages. Compounding these problems, Progressive has had to delay the introduction of a new product line due to delays in documentation preparation. Progressive contracts most of its printing requirements to Web Graphic Inc., a small company owned by Rob Borman. Borman has dedicated a major portion of his printing capacity to Progressive’s requirements because Progressive’s contracts represent approximately 50 percent of Web Graphic’s business. Nolan has known Borman for many years; as a matter of fact, she learned of Progressive’s need for an accounting manager through Borman. While preparing Progressive’s most recent financial statements, Nolan became concerned about the company’s ability to maintain steady payments to its suppliers; she estimated that payments to all vendors, normally made within 30 days, could exceed 75 days. Nolan is particularly concerned about payments to Web Graphic; she knows that Progressive had recently placed a large order with Web Graphic for the printing of the new product documentation, and she knows that Web Graphic will soon be placing an order for the special paper required for Progressive’s documentation. Nolan is considering telling Borman about Progressive’s cash problems; however, she is aware that a delay in the printing of the documentation would jeopardize Progressive’s new product.
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Case Study 1-33
Disclosure of Confidential
Information; Ethics;
Software Developer
MANAGEMENT ACCOUNTING PRESENTATION
NAME

I. Overview of Case Study Facts


Progressive Corporation was formed 5 years ago.



It deals with distribution and development of software applications



The company has a current annual revenue of $25 million after steady growth over the last
years.



Company’s revenue is declining for past 6 months without anyone noticing.



Decline in revenue has resulted in cash shortages and delay of new product’s launch.



Nolan who is the accounting manager of Progressive for one year knows one of the supplier’s

owner who does most of the printing tasks for Progressive named Borman.


Nolan is considering whether she should pass on the confidential information related to the
financial difficulties in company’s ability to pay its suppliers to Borman. (Hilton & Platt, 2017)

II. Identification and Description of
Management Accounting Topic


The relevant Management Accounting Topic is related to Ethics and disclosure of
confidential information to third parties.



Four standards set by the Institute of Management Accountants (IMA) Code of Ethics are :

1. Competence 2. Confidentiality 3. Integrity 4.Credibility


This case study is related to Confidentiality or disclosure of confidential information by
accountants to the third parties.



Disclosure of financial difficulties of Progressive to Borman, who is known by Nolan
(Accounting Manager) is considered unethical as per the Code of Ethics set by the Institute
of Management Accountants (IMA). (IMA, 2022)

III. Identification of Requirements:


First Requirement:
 Whether

Nolan should pass on the information regarding the financial

difficulties of Progressive to one of the company’s suppliers, Borman?


Second Requirement:
 If

Nolan becomes aware of the confidential information about the

third party, Borman, regarding the cancellation of special paper order
required for the new product launch of Progressive, then whether she
should talk to the company’s management for confirmation or not?
(Duska, Duska, & Kury, 2018)

IV. Solutions to the Requirements:


First Solution


Nolan would acquire plenty of confidential information during the performance of her duties and ethically

should not disclose any of the acquired information to any third whether known or unknown by her.


Except that the information is for the best interest of the general public and not only the related party or
the disclosure is required by law...


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