Does Mary Beth’s proposal present an ethical dilemma? 

/ Business & Finance / By

 The management of the Auto Parts Division of the Santana Corporation receives a bonus if the division’s income achieves a specific target. For 2021, the target will be achieved by a wide margin. Mary Beth Williams, the controller of the division, has been asked by Philip Stanton, the head of the division’s management team, to try to reduce this year’s income and “bank” some of the profits for future years. Mary Beth suggests that the division’s bad debt expense as a percentage of the gross accounts receivable for 2021 be increased from 3% to 5%. She believes that 3% is the more accurate estimate but knows that both the corporation’s internal auditors as well as the external auditors allow some flexibility when estimates are involved. 
Required:
Does Mary Beth’s proposal present an ethical dilemma?  Identify the following:
Step 1—The Facts:
Step 2—The Ethical Issue and the Stakeholders:
Step 3—Values: 
Step 4—Alternatives:
Step 5—Evaluation of Alternatives in Terms of Values:
Step 6—Consequences:
Step 7—Decision: Student must decide their course of action.
Submit a 1- to 2-page response as a Word document.

 The management of the Auto Parts Division of the Santana Corporation receives a bonus if the division’s income achieves a specific target. For 2021, the target will be achieved by a wide margin. Mary Beth Williams, the controller of the division, has been asked by Philip Stanton, the head of the division’s management team, to try to reduce this year’s income and “bank” some of the profits for future years. Mary Beth suggests that the division’s bad debt expense as a percentage of the gross accounts receivable for 2021 be increased from 3% to 5%. She believes that 3% is the more accurate estimate but knows that both the corporation’s internal auditors as well as the external auditors allow some flexibility when estimates are involved.  Required: Does Mary Beth’s proposal present an ethical dilemma?  Identify the following: Step 1—The Facts: Step 2—The Ethical Issue and the Stakeholders: Step 3—Values:  Step 4—Alternatives: Step 5—Evaluation of Alternatives in Terms of Values: Step 6—Consequences: Step 7—Decision: Student must decide their course of action. Submit a 1- to 2-page response as a Word document.

Why Choose Us

  • 100% non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How it Works

  • Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.