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Linda Butler is the new division controller of the snack-foods division of Daniel Foods. Daniel Foods has reported a minimum 15% growth in annual earrings

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Linda Butler is the new division controller of the snack-foods division of Daniel Foods. Daniel Foods has reported a minimum 15% growth in annual earrings for each of the past 5 years. The snack-foods division has reported annual earrings growth of more than 20% each year in this same period. During the current year, the economy went into a recession. The corporate controller estimates a 10% annual earnings growth rate for Daniel Foods this year. One month before the December 31 fiscal year-end of the current year, Butler estimates the snack-foods division will report an annual earnings growth of only 8%. Rex Ray, the snack-leads division president, is not happy, but he notes that the end-ul-year actions" still need to be taken. Butler makes some inquiries and is able to compile the following list of end-of-year actions that were more or less accepted by the previous division controller: (Click the icon to view the end-of-year actions.) Read the requirements Determine whether each of the end-of-year actions is in clear violation (Violation), is clearly in compliance with (No Volation), or may be in violation with (Possible Violation) the Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management'. End-of-Year Action Violation Deferring December's routine monthly maintenance on packaging equipment by an independent a. contractor until January of next year Violation? End-of-Year Action Extending the close of the current fiscal year beyond December 31 so that some sales of next b. year are included in the current year Violation? End-of-Year Action Altering dates of shipping documents of next January's sales to record them as sales in c. December of the current year Violation? End-of-Year Action - d. Giving salespeople a double bonus to exceed December sales targets Violation? End-of-Year Action Deferring the current period's advertising by reducing the number of television spots run in e. December and running more than planned in January of next year Violation End-of-Year Action Deferring the current period's reported advertising costs by having Daniel Foods' outside advertising agency delay billing December advertisements until January of next year or by f. having the agency alter invoices to conceal the December date Violation? End-of-Year Action Persuading carriers to accept merchandise for shipment in December of the current year though g. they normally would not have done so Requirement 3. What should Buller do if Ray suggests that these end-of-year actions are taken in every division of Daniel Foods and that she will greatly harm the snack Foods division if she does not coaperate and paint the rosiest picture possible of the division's results? O A. Butler should follow Ray's request. If the other divisions of Daniel Foods are taking the same actions, then the snack-food division should do the same in order to maintain consistency among the divisions. OB. Butler should contact legal counsel. If legal counsel is unwilling to take legal action against Ray, then Buller should resign OC. Butler should first directly raise her concerns with Ray. If Ray is unwilling to change his request, Butler should discuss her concerns with the Corporate Controller of Daniel Foods. In the extreme, she may want to resign if the corporate culture of Daniel Foods is to reward division managers who take "end-of-year actions that Butler views as unethical and possibly illegal. OD. Butiar should resign immediately

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