Stylish Chairs

Stylish Chairs is a small company which makes and sells copies of an 18th-century rococo chair. The company is owned by the couple Anni-Frid and Benny. You are an intern working at Stylish Chairs.

For the sake of simplicity, this assignment does not consider taxes and other fees and there is no stock or work in process in the beginning or end of every year. You might have to use information from previous questions for answering information for following questions and whenever possible support your arguments with your calculations.

Question 1

Anni-Frid and Benny decided they need a management accountant for helping them understand their business and hire an old friend named Bjorn for this role. Besides being an old friend of the couple, Bjorn is good at playing the guitar. However, Bjorn lacks the qualifications for fulfilling the role of a management accountant.

Please state one of the ethical standards, as provided by the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice1, which is being jeopardized by Anni-Frid and Benny hiring Bjorn and justify why this standard is being jeopardized. (There might be more than one ethical standard being jeopardized but only one is required for this question).