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CRITICAL THINKING Ethics Case he cost accountant for Hi-Power Mower Company, recently installed aci 2-horsepower Quickcut, and the 18-horsepower Supercut--are activity 8-horsepower Bla iPowers St. Louis lawn tractor (riding mower) plant where three 8-horsepower Bladerunner the 1 models-t ased costing at Hi-Powers St. Louis lawn tractor (riding mo man- s new product costs for these three models show that the companys traditi ntly undercosting the 18-horsepower Supercut. This was due costing system had been significa pri marily to the lower sales volume of the Supercut compared to the Bladerunner and the Quickcut Supercut Before completing his n by his friend analysis and reporting these results to management, Curtis is a Ed Gray who is the production manager for the 18-horsepower Supercut model. Ed eard from one of Curtiss staff about the new product costs and is upset and worried for his job because the new c osts show the Supercut to be losing, rather than making, money.Broadening Your Perspective t, Ed condemns t ing and why it is more accurate than the companys present system. 181 t first, base pd begs Curtis, Massage the figures just enough to save the line from being discontinued. You oW want me to lose my job, do you? Anyway, nobody will know. he new cost system, where upon Curtis explains the practice of activity more accurate than the companys present system. Even more worried now Curtis holds firm but agrees to recompute all his calculations for accuracy before submitting his costs to management. Instructions Who are the stakehalders in this situation? What are Curtiss ethical obligations to the company? To his friend? (b) What, if any, are the ethical considerations in this situation?

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Answer #1

A.The Stakeholders are in this situation are:-

1.EMPLOYEES:-

Since this change will reassess the expense of item and it might prompt suspension of product offering along these lines affecting the well creatures of employees associated with that unit.

2.STOCKHOLERS:-

Since new framework will compute progressively precise expense of the item and misfortune making item will be stopped. This will enhance return of investors.

3.CUSTOMERS:-

Since expense of item may go up or down or item might be stopped, in this manner this will affect the clients.

B.Ethical consideration in this circumstance is taking a choice between stopping of misfortune making product offering or ensuring the occupations or prosperity of workers who may endure in view of cessation of misfortune making product offering.

C.

Curtis' ethical commitment to the organization is to speak to the information effectively and do the investigation of productivity of product offering dependent on right and exact designation of backhanded expense. Likewise he should likewise show an examination for effect on the organization for cessation of any misfortune making product offering

Curtis' moral commitment to his companion is to shield his activity from the cessation of product offering

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