DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.1-4 - LO: 01.04
NATIONAL STANDARDS: United States - BUSPROG - Ethics
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-16 - Business Applications
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 15 min.
DATE CREATED: 10/7/2016 9:26 AM
DATE MODIFIED: 10/7/2016 9:26 AM
QUESTION ID: JFND-GO33-GINU-1CNN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-CTTU-Y3DF-GCHD-Q3DD-8Y41-4CUR-GRH1-43UR-GO4N-43UG-
GOHN-43JW-GAHU-1CTT-GIDI-GWN8-EPRW-EMJO-GEAG-NAJO-CA4D-1PDB-
GCSU-GCTO-CRSU-OCDD-GOSU-K3B3-CWSS-NP5F-8RAD-1QJ3-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
157. What can a company do to increase the likelihood of its employees being ethical in all their undertakings?
ANSWER: Companies can establish a culture and atmosphere of ethical business practices by rewarding
those employees who are honest, fair, and act with integrity. They can establish their own
Chapter 1
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code of professional conduct that sets out the organizational purpose, beliefs, values, and
expectations of employees. The code of conduct should be known, visible, and enforced.
Companies should hire certified professionals, when appropriate. Certified professionals have
codes of conduct and standards appropriate to their duties. Companies can incorporate ethical
values into the selection criteria for employee recruitment.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.1-4 - LO: 01.04
NATIONAL STANDARDS: United States - BUSPROG - Ethics
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-16 - Business Applications
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 15 min.
DATE CREATED: 10/7/2016 9:26 AM
DATE MODIFIED: 10/7/2016 9:26 AM
QUESTION ID: JFND-GO33-GINU-1CNB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-CTTU-Y3DF-GCHD-Q3DD-8Y41-4CUR-GRH1-43UR-GO4N-43UG-
GOHN-43JW-GAHU-1CTT-GIDI-GWN8-EPRW-EMMN-CWAS-GC5B-GA5U-QA5G-
8RSU-E3T3-8YSU-OATI-GOSU-G3TI-GOSS-NPJS-GOAU-GATS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
158. You are a management accountant for Savage Corporation. Gabe Hopen, the sales representative for one of Savage
suppliers, invited you to attend a professional sporting event. Because you are an avid sports fan, you accepted Gabe's
invitation.
At the sporting event, Gabe begins talking about Savage's upcoming contract renewals with suppliers. Because there is
intense competition and because it is the first bid he will submit to Savage Corporation, he asks you to review his bid to
make sure "it is good enough" before he submits it to the company. In addition, because you are knowledgeable about
costs, especially regarding this contract, he asks you to tell him if his bid is "in the ballpark" or "needs improvement." he
indicates that if he wins the contract, you will be provided with season tickets for the rest of the year.
Considering the Standards of Ethical Conduct for Management Accountants, how would you respond to Gabe's request?
ANSWER: According to the Standards of Ethical Conduct for Management Accountants, management
accountants have a responsibility to "refrain from using or appearing to use confidential
information acquired in the course of their work for unethical or illegal advantage either
personally or through a third party." If you agree to review Gabe's bid and tell him if the bid
needs improvement so that he will win the contract, this could be viewed as using
confidential information for your personal advantage (season tickets). In addition,
management accountants have a responsibility to refuse any gift, favor, or hospitality that
would influence their actions.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.1-4 - LO: 01.04
NATIONAL STANDARDS: United States - BUSPROG - Ethics
Chapter 1
Copyright Cengage Learning. Powered by Cognero. Page 88
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-16 - Business Applications
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 15 min.
DATE CREATED: 10/7/2016 9:26 AM
DATE MODIFIED: 1/2/2017 3:08 AM
QUESTION ID: JFND-GO33-GINU-1CB3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-CTTU-Y3DF-GCHD-Q3DD-8Y41-4CUR-GRH1-43UR-GO4N-43UG-