Essay on The Ethics Of Managerial Accounting
In the described situation that happened in Hi-Power Mower Company, the following stakeholders are affected by Marcus’s actions: Marcus Lum (the cost accountant for Hi-Power Mower Company), Marcus’s friend Ray Pon (the production manager for the 18-horsepower Supercut model), and the Hi-Power Mower Company’s management.
Marcus has to report his analysis results to management. Meanwhile, his friend insists that he changes the figures so that the production of Supercut is continued. Whatever decision Marcus makes, he is a primary stakeholder.
Moreover, Ray Pon is a stakeholder too. Ray was the one who condemned the new costing system and insisted that Marcus changed the report so that he didn’t to lose a job. He will be impacted by this issue and by Marcus’s decision.
Additionally, Marcus will be reporting his analysis and calculations to the management. Whether he reports actual numbers showing a loss caused by the Supercut production, or changes some numbers so that his…