Jeckel 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 be approved by the employee’s immediate supervisor. Fred Rubble, an assistant cost accountant, charges the employee an amount based on the company’s net purchase cost. Fred Rubble is in the process of replacing the deck on his house and has requisitioned lumber for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, Fred reviewed all the purchase invoices for the past year. He then used the lowest price to compute the amount due the company for the lumber. DISCUSS WHETHER FRED BEHAVED IN AN ETHICAL MANNER.
Jeckel 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 be approved by the employee’s
immediate supervisor. Fred Rubble, an assistant cost accountant, charges the employee an amount based on the company’s net purchase cost.
Fred Rubble is in the process of replacing the deck on his house and has requisitioned lumber for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, Fred reviewed all the purchase invoices for the past year. He then used the lowest price to compute the amount due the company for the lumber.
DISCUSS WHETHER FRED BEHAVED IN AN ETHICAL MANNER.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
