Question
Manny Carson, the certified management accountant, and controller of Wakeman Enterprises have been given permission to acquire a new computer and software for the company's
Manny Carson, the certified management accountant, and controller of Wakeman Enterprises have been given permission to acquire a new computer and software for the company's accounting system. The capital investment analysis showed an NPV of $100,000. However, the initial estimates of acquisition and installation costs were made on the basis of tentative costs without any formal bids. Manny now has two formal bids, one that would allow the firm to meet or beat the original projected NPV and one that would reduce the projected NPV by $50,000. The second bid involves a system that would increase both the initial cost and the operating cost.
Normally, Manny would take the first bid without hesitation. However, Todd Downing, the owner of the firm presenting the second bid, is a close friend. Manny called Todd and explained the situation, offering Todd an opportunity to alter his bid and win the job. Todd thanked Manny and then made a counteroffer.
- Evaluate the ethical behavior of Manny.
- Explain whether Manny should have called Todd in the first place.
- Explain whether there would have been any problems if Todd had agreed to meet the lower bid price.
- Identify the parts of the Statement of Ethical Professional Practice (Chapter 1) that Manny may be violating, if any.
- From a Christian perspective, what should Jason do? Explain your answer.
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