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WK2- Ethics - Discuss whether Gretchen behaved in an...

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WK2-Ethics Earnhart manufacturing Company allows employees to purchase, at cost, manufacturing materials, such as metal and lumber, for personal use. To purchase materials for personal use, an employee must complete a materials requisition form, which must then be approved by the employee’s immediate supervisor. Gretchen MacCauley, an assistant cost accountant, charges the employee an amount based on Earnhart’s net purchase cost. Gretchen MacCauley is in the process of replacing a deck on her home and has requisitioned lumber for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, Gretchen reviewed all the purchase invoices for the past year. She then used the lowest price to compute the amount due the company for the lumber.
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Unformatted text preview: Discuss whether Gretchen behaved in an ethical manner Gretchen didn’t behave in an ethical manner. Gretchen made an unethical decision by charging the employee an amount based on the net purchase cost. She was unfair by giving herself the lowest price for the purchase. This unethical decision not only is unfair but it’s also harmful to the company and other employees. Gretchen was ethical when being approved with the company policy. Unethical behavior will destroy a firm's ability to make money. Highest standards of ethical conduct are especially important in the accounting profession, where the financial decisions of a business are directly based on information and judgments provided by their accountants ....
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