In this case Company H allows employees to purchase manufacturing materials for personal use. To avail this, employees must complete a material acquisition form and should get the superior’s approval. Person F is in the process of replacing the deck on his home and has requisitioned lumber for the personal use. He reviewed all the past year invoice, and then used the lowest price to compute the amount due of the company for the lumber. To discuss: Whether F behaved in an ethical manner.

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Ethics in ActionAvett Manufacturing Company allows employees to purchase materials, such as metal and lumber, 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 he approved by the employee’s immediate supervisor. Brian Dadian, an assistant cost accountant, then charges the employee an amount based on Avett’s net purchase cost. Brian is in the process of replacing a deck on his home and has requisitioned lumber 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 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: honesty, fairness, objectivity, and…

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Chapter 18, Problem 18.1CP

To determine

Case Summary:

In this case Company H allows employees to purchase manufacturing materials for personal use. To avail this, employees must complete a material acquisition form and should get the superior’s approval. Person F is in the process of replacing the deck on his home and has requisitioned lumber for the personal use. He reviewed all the past year invoice, and then used the lowest price to compute the amount due of the company for the lumber.

To discuss: Whether F behaved in an ethical manner.

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Ethics in ActionAvett Manufacturing Company allows employees to purchase materials, such as metal and lumber, 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 he approved by the employee’s immediate supervisor. Brian Dadian, an assistant cost accountant, then charges the employee an amount based on Avett’s net purchase cost. Brian is in the process of replacing a deck on his home and has requisitioned lumber 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 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: honesty, fairness, objectivity, and…

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