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Ethical Issue Southeast Suites operates a regional hotel chain. Each hotel is operated by a manager and an assistant managericontroller. Many of the staff who

Ethical Issue Southeast Suites operates a regional hotel chain. Each hotel is operated by a manager and an assistant managericontroller. Many of the staff who run the front desk, clean the rooms, and prepare the breakfast buffet woek part time or have a second job, so cmployce turnover is high. Assistant ManageriController Terry Dunn asked the new bookkeeper to help prepare the hotel's master badget. The master budget is prepared once a year and is submitted to company headquarters for approval, Once approved, the master badget is used to evaluate the hotel's performance. These performance cvaluations affect hotel managers" bonuses, and they also affect company decisions on which hotels deserve extra funds for capical improvements. When the budget was almost complete, Dunn asked the bookkeeper to increase amounts budgered for tabor and supplies by . When asked why, Dunn responded that hotel manager Clay Murry told her to do this when she began worktig at the hotel. Murry explained that this bedgetary cushion gave him flexibility in rumning the hotel. For example, because company headquarters tightly controls capital improvement funds, Murty can use the extra moncy budgeted for labor and supplies to replace broken televisions or pay "bonuses" to keep valued emiployeecDunn initially accepted this explanation because sbe had observed similar bebavior at the hotel where she worked previously. End of Chapter: Master Budgots When the budget was almost complete, Dunn asked the bookkeeper to inerease amounts bodgeted for Labor and supplies by 15\%. When asked why, Dunn responded that hotel manager Clay Murry told her to do this when she began working at the hotel. Murry explained that this budgetary cushion gave kim flexibility it running the hotel, For example, because company beadquarters tightly controls capital improvement funds, Murry ean use the extra money budgeted for labor and supplies to replace broken televisions or pay "bonuses" to keep valaed employees. Dunn initially aceepted this explanation because she had observed similar behavior at the hotel where sbe worked previously. Requirements Put yourself in Dunn's position. In deciding how to deal with the sitaztion, answer the following questions:-1. What is the ethical issue? 2. What are the options? 3. What are the possible consequences? 4. What should you do?

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