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IMA ethical standards Ethical Issue 18-1 Cassidy Manning is assistant controller at LeMar Packaging Inc., a manufacturer of cardboard boxes and other packing materials. Manning
IMA ethical standards
Ethical Issue 18-1 Cassidy Manning is assistant controller at LeMar Packaging Inc., a manufacturer of cardboard boxes and other packing materials. Manning has just returned from a packaging industry conference on activity-based costing. She realizes that ABC might help LeMar meet its goal of reducing cost by 5% over the next three years. LeMar Packaging's Order Department is a likely candidate for ABC. While orders are entered into a computer that updates accounting records, clerks manually check customers' credit6 history and hand-deliver orders to shipping. This process occurs whether the sales order is a dozen specialty boxes worth $80, or 10,000 basic boxes worth $8,000. Manning believes that identifying the cost of processing a sales order would justify (1) further computerization of the order process and (2) changi8ng the way the company processes small orders. However, the significant cost savings would arise from elimination of two positions in the Order Department. The company's sales order clerks have been with the company many years. Manning is uncomfortable with the prospect of proposing a change that will likely result in terminating these employees. Requirement 1. Use the IMA's ethical standards to consider Manning's responsibility when cost savings come at the expense of employees' jobsStep by Step Solution
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