The precision parts corporation manufactures automobile parts. The company has reported a porfit every year since the company's inception in 1980. Management prides itself on this accomplishment and believes one important contributing factor is the company's incentive plan that rewards top management a bonus equal to a percentage of operating income goal for the year is achieved. However , 2016 has been a tough year , and prospects for attaining the income goal for the year are bleak.

Tony Smith , the company's chief financial officer , has determined a way to increase December sales by an amount sufficient to boost operating income over the goal for the year and secure bonuses for all top management. A reputable customer ordered 120,000$. of normally stocked parts to be shipped on January 15,2017. Tony told the rest of top management "I know we can get that order ready by December 31. We can then just leave the order on the loading dock until shipment. I see nothing wrong with recognizing the sale in 2016 , since the parts will have been manufactured and we do have a firm order from a reputable customer." The company's normal procedure is to ship goods F.O.B. destination and to recognize sales revenue when the customer receives the parts.

What do you think of the ethical dilemma raised in the Precision Parts Corporation case? Specifically discuss the argument raised by the chief financial officer relative to the January 15th shipment?