Question
Assume you are the production cost accountant at Kwan. The plant manager, who is also your boss, asked you to change the computation of the
Assume you are the production cost accountant at Kwan. The plant manager, who is also your boss, asked you to change the computation of the production-volume variance from being unfavorable variance to a favorable variance. Doing that would be reflected in the income statement also as favorable, for your boss and even for yourself. You run the numbers and notice that the change he is asking you to do is only a 1% difference in the overall financial statements. What would you do? Would you go ahead with bending the numbers, explain your decision.
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