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Part III Ethics Question: Misti Meggs is the corporate accounting manager for Radio Shack. As part of the budgeting process for the entire corporation, she
Part III Ethics Question: Misti Meggs is the corporate accounting manager for Radio Shack. As part of the budgeting process for the entire corporation, she has asked the manager of each store to prepare a store master budget. The manager of one of the largest stores, Ruth Baker, decides to understate the sales budget and overstate all the budgets related to expenses. Ruth believes this is a more conservative approach than using the estimated numbers she honestly believes will be achieved for the year. She also thinks that the corporate office will look more favorably on her store's actual achievements when they are subsequently compared to this budget. Ruth has asked Crystal Jutte, her assistant manager, to review the budget before it is submitted. Crystal is aware of the real estimates that Ruth made. What is the impact of Ruth Baker's budget for the corporation? What ethical issues face Crystal Jutte? (20 points)
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