1. What do you think are some advantages for using the ABC method versus a single plant-wide rate or multiple departmental overhead rates.Why would an activity-based costing (ABC) system appeal to some companies and not all companies.Provide at least 3 examples of companies you think would and wouldn't want to use the ABC method.

Purchase of Materials for Personal Use

Smith Manufacturing Company allows employees to purchase materials, such as metal and limber, for personal use at a price equal to the company's cost.To purchase materials, an employee must complete a materials requisition form, which must then be approved by the employee's immediate supervisor.Brian, an assistant cost accountant, then charges the employee an amount based on Smith's net purchase cost.

Brian is in the process of replacing a deck on his home and has requisitioned lumbar for personal use, which has been approved in accordance with company policy.In computing the cost of the lumber, Brian reviewed all the purchase invoices for the past year.He then used the lowest price to compute the amount due to the company for the lumber.

The Institute of Management Accountants (IMA) is the professional organization for managerial accountants.The IMA has established four principles of ethical conduct for its members:

1. Honesty
2. Fairness
3. Objectivity
4. Responsibility

Question:

Using the IMA's four principles of ethical conduct, evaluate Brian's behavior.Has he acted in an ethical manner?Why or Why not? please use an example.