Week 2 DQ - Read the Ethical Dilemma Profitability Versus...

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Read the Ethical Dilemma, Profitability Versus Social Conscience (effects of cost behavior), on p. 790 in Fundamental Financial & Managerial Accounting Concepts . Did Mr. Borrough’s decision violate any of the Standards of Ethical Conduct for Management Accountants in Exhibit 14.13 on p. 712? If so, which code did he violate? Do you believe this practice is ethical? Why or why not? I think that Borrough’s violated the Standards of Ethical Conduct for Management Accountants because he did not disclose fully all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, comments, and recommendations presented. By not telling the consumers about the lower yield rate and taste difference of Bio Lab’s corn, Borrough’s is deceiving the consumers. He is only showing the good side to Bio Lab’s corn – therefore, he is violating another standard – communicate unfavorable as well as favorable information and professional judgments or opinions.
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Week 2 DQ - Read the Ethical Dilemma Profitability Versus...

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