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FB2101 Accounting II Teaching of Ethics in Accounting

FB2101 Accounting II Teaching of Ethics in Accounting. Five Core Values Integrity Responsibility Fairness Respect Benevolence. RESPONSIBILITY. INTEGRITY. Cost Allocation Defer costs to future periods – report higher profits for this period. Special Orders

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FB2101 Accounting II Teaching of Ethics in Accounting

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  1. FB2101 Accounting II Teaching of Ethics in Accounting

  2. Five Core Values Integrity Responsibility Fairness Respect Benevolence

  3. RESPONSIBILITY INTEGRITY Cost Allocation Defer costs to future periods – report higher profits for this period

  4. Special Orders Accepting of a special order even though the special order price does not cover costs INTEGRITY RESPONSIBILITY

  5. Loss Making Department Not closing a department/division that is showing a loss for the past few years RESPONSIBILITY BENEVOLENCE

  6. Make or Buy In a make or buy decision, buy rather than make, even though it is cheaper to make INTEGRITY RESPONSIBILITY FAIRNESS

  7. Obsolete Inventory Disposing of so-called “obsolete” inventory at a cheaper price, when rework can fetch a higher price INTEGRITY RESPONSIBILITY

  8. Budgeting Creating budget slacks so that a budget is achievable by the manager INTEGRITY RESPONSIBILITY RESPECT

  9. Budgeting Overstating budgeted profit to have a better performance evaluation INTEGRITY RESPONSIBILITY RESPECT

  10. Variance Analysis • Employ cheaper labor  favorable variance • Buy materials without careful outsourcing  higher price  unfavorable variance INTEGRITY RESPONSIBILITY FAIRNESS

  11. Job Costing Quote a cheaper price for a job INTEGRITY RESPONSIBILITY

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