Consider the following true scenario between Dave, a printer, and Steve, an assistant in the local universitys
Question:
Steve: Dave, our department needs to have 10,000 posters printed for the basketball team for next year. Here’s the mock-up, and we’ll need them in a month. How much will you charge?
Dave: Well, given the costs I have for ink and paper, I can come in at around $5,000.
Steve: Great, here’s what I want you to do. Print me up an invoice for $7,500.
That’s our budget. Then, when they pay you, you give me a check for $2,500. I’ll make sure that you get the job.
Required:
Is this ethical? What should Dave do?
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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