Ethical Issues

Dimitri looked at the numbers, frowning. He couldn't quite put his finger on it$,$ but something in his CVP analysis didn't feel quite right.

After looking at it for almost an hour, he found it$.$ He had accidentally transposed one of the cost numbers, increasing the $C\frac{M}{?}$ candle. He picked up the phone to call Josey, then stopped as he noticed the clock. She wouldn't be in her office. She would be in the boardroom right now, showing the board his incorrect numbers.

What was he going to do$?$ He couldn't interrupt a board meeting, could he$?$ A new employee walking into an important meeting to tell everyone that he had made a dumb mistake. It would be career suicide! He looked at the numbers again. It wasn't really that big of a mistake, was it$?$ It was only a few cents per unit, and it changed the breakeven point by only a few thousand units. From what he remembered from his audit class, those numbers were immaterial. Perhaps it would be better just to let it go$.$ Chances are no one would notice, and he could always fix it next quarter.

Problem #$4$

Do you agree with Dimitri that his mistake is immaterial? In answering this question, thinkoutside the box and consider individuals outside of the department and even Wedgewood. Would your answers be different if the mistake was double the size? Triple the size? Defend your answers.