Question

Required information The following information applies to the questions displayed below. drift" caused by failure to maintain precise heat levels during the production process. Rejects from the 100 percent testing program can be reworked to acceptable levels if the defect is drift. However, in a recent analysis of customer complaints, Marie Allen, the assistant controller, and the quality control engineer determined that normal rework does not bring the circuits up to standard. Sampling showed that about half of the reworked circuits will fail after extended amplifier operation. The incidence of failure in the reworked circuits is projected to be about 10 percent over five years Unfortunately, there is no way to determine which reworked circuits will fail, because t he problem. The rework process could be ch the suggested change indicates that it is not economically feasible. AccuSound's marketing analyst has indicated that this problem will have a significant impact on the company's reputation and customer satisfaction. Consequently, the board of directors would interpret this problem as having serious negati implications for the company's profitability esting will not detect rrect the problem, but the cost-benefit analysis for nged to co Allen included the circuit failure and rework problem in her report prepared for the upcoming quarterly meeting of the board of directors. Due to the potential adverse economic impact, Allen followed a long- standing practice of highlighting this information. After reviewing the reports to be presented, the plant manager and his staff complained to the controller that he should control his people better. "We cant upset the board with this kind of material. Tell Allen to tone that down. Maybe we can get it by the board in this meeting and have some time to work on it. People who buy those cheap systems and play them that loud shouldn't expect them to last forever.

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Answer 1

1. Controller of a company is responsible for everything relating to accounts and finance of the company and to provide the financial impact of every .decision that the company made. In the given case company may have some serious financial impact due to the failures of circuit board and it would be advisable for controller to ensure that he reports it's financial and economic impact to appropriate authorities.

Thus, ethical responsibility to be accepted by the controller is (a). Reporting responsibilities .

2 It should be noted that the purpose of quality control engineer is to ensure the quality of the product being made by the company. Thus, if there is any problem relating to the quality of the product of company then it is his responsibility to fix it and ensure that customer are provided with a good quality product .

Thus, ethical responsibility that should be accepted by the quality control engineer is (b) . Responsibilities for product quality .

3. The main responsibility of Plant manager is to ensure that the product made by them using Plant and machinery are made as per the standard guidelines and standards that have been set by the management.

Thus, in the given case ethical responsibility that should be accepted by Plant manager is (c) . Ensuring that products meet quality standards.