Chapter 1, the Institute of Management Accounting’s Standards of Ethical Professional Practice were described as competence, confidentiality, integrity, and credibility. The president of Clever Company has suggested reporting a material amount of the product costs as period costs. This reclassification would enable the company to report the desired gross margin percentage of sales required for its loan application. Since the net income is the same, the president argues that reporting in a different category is acceptable. Identify and discuss which standards of ethical conduct the accountant and the president would be violating if the accountant agrees to the president’s suggestion. Be specific. What should the accountant do?