The managers of Whitcomb Foods decide they will hire a management accountant to help them analyze the decision to expand their product line. They solicit bids from various accountants in the city and receive three proposals. In describing their qualifications for the job, the three state the following: Accountant A: “I have recently advised the symphony on how to raise money and therefore I know the local area well.” Accountant B: “I have advised several small firms on expansion plans.” Accountant C: “I have advised Patrician Juices [Whitcomb’s main competitor] and can share its experiences and insights with you.” All of the proposals have the same price. Questions: 1. As the accounting manager of Whitcomb Foods, prepare a memo recommending which accountant you would prefer to retain. Be sure to include your reasons. 2. Which, if any, of the accountants making a proposal are violating the IMA’s code of ethics? What is (are) the violation(s)?
The managers of Whitcomb Foods decide they will hire a management accountant to help them analyze the decision to expand their product line. They solicit bids from various accountants in the city and receive three proposals. In describing their qualifications for the job, the three state the following:
Accountant A: “I have recently advised the symphony on how to raise money and therefore I know the local area well.”
Accountant B: “I have advised several small firms on expansion plans.”
Accountant C: “I have advised Patrician Juices [Whitcomb’s main competitor] and can share its experiences and insights with you.”
All of the proposals have the same price.
Questions:
1. As the accounting manager of Whitcomb Foods, prepare a memo recommending which accountant you would prefer to retain. Be sure to include your reasons.
2. Which, if any, of the accountants making a proposal are violating the IMA’s code of ethics? What is (are) the violation(s)?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
