Summary Of Dinesh Kumar's Ethical Dilemma

Recently, Dinesh Kumar was faced with an ethical dilemma. Dinesh, a new hire accountant at O’Brian & McKinney, was asked by Kate McKinney, the company’s co-founder, to investigate the billings of an important client, Russell Brandy. Russell Brandy has been dissatisfied with O’Brian & McKinney, claiming he has been overcharged. As a result, Tom O’Brian, the company’s co-founder, has pushed to fire John Goodfellow, the Account Executive in charge of Russell Brady’s account, and give the account to Danielle Chen. Danielle is the Account Executive in charge of the account of Collin Bennet, a very happy client. Gaining the account of Russell Brady would mean a promotion for Danielle. Dinesh discovered that by using a single cost driver overhead …show more content…
O’Brian has decided to follow through with his plan. He will fire John and give Danielle a promotion and the Russell Brady. O’Brian & McKinney have decided to reduce the billings of Russell Brady but continue allocating overhead using a single cost driver of professional hours. Ms. McKinney has called in Dinesh to inform him of their decision. During their meeting, Dinesh should make a claim for O’Brian & McKinney to adopt an Activity-Based Costing overhead allocation method, increase the billings of Collin Bennet, and advocate for John Goodfellow, since he had no part in the billing of Russell …show more content…
John Goodfellow provided quality service to Russell Brady, he is not the one to blame for Russell Brady’s complaint of being overcharged. Mr. Loveless, the Controller, is responsible for the miscalculations in costing the overhead. If John Goodfellow is fired and nothing happens to Mr. Loveless, the punishment will be unfairly distributed. This is an organization level of inequality because Mr. Loveless is receiving no punishment because he holds a much higher organizational ranking than John