Concept explainers
(a)
Ethical Issue: The case is related to the manipulation of the time study which leads to wrong labor time standard. In this case, time study is conducted for painting department of S Company to set labor time standards, in which rest time, preparation time and cleanup time is also considered.
B is an employee who had long experience in painting department. B is informed that for new product time study is conducted on him, to affect the labor time standard B deliberately reduce his work pace. It leads to false labor time standards for new product. But the company is unaware about the B’s action.
To identify: the beneficiaries and harmed.
(b)
To identify: an ethical issue.
(c)
To identify: the possible action to obtain valid data.
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Accounting Principles, Volume 1: Chapters 1 - 12
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