Law assignment on: Standards of Ethical Conduct

Part A

 Standards of Ethical ConductIt has been viewed that there are four standards of ethical conduct for the management accountants such as Competence, Confidentiality, Integrity and Credibility.

According to me, Integrate principle motivates me a lot because this principle restricts me from indulging in any type of conduct which would affect the duties ethically. It has been examined that the ABC Costing is considered as the catalyst for the progress of the management accounting and enhances credibility. This shows that ABC costing shows the credibility standard. It permits, in the principle for the more exact products costing and the finer operational evaluation of the performance because of the significance given to the actions and to its prospect on organization on the method of the management and organization. Because of their significance as the tools of the management, these systems like Balanced Scorecard and ABC System shall perform the considerably significant function in efficiency stage of the public sector institution and the modernization of the management. Numerous studies have shown that systems of traditional accounting were not offering the mandatory information required to support the decisions of the managers. In, fact ABC is considered as the costing system that permits better visualization of the resources and concentrates on the evaluation of the entire activities of the Company’s structure (Young, 2003).  The basic principle of the model is the simple one and assumes that resources are implemented throughout the activities and implemented by the cost items.Generally, budgeting considered as the process of controlling and planning for the assets utilization in activities of the business. It is referred as the comprehensive and formal process that gives detail of operations, finance and sales and hence offering management with the guidelines of the performance. With the help of budgeting, management finds out the profitable implementation of the restricted resources. It is very clear that process of the budgeting enhances ability of the management to efficiently deploy the resources and initiate alterations to plan in the timely manner.  It can be said that Budgeting follows all the proper rules and regulation and reflects the attribute of competence standard.

It is very clear that there are four standards of ethical conduct for the cost /management accountant such as Competence, Confidentiality, Integrity and Credibility.

Competence: This principle reflects that the management accountant should perform duties in relation with applicable regulations, technical standard and laws. The management accountant breaches the standard Competence by not performing his duties in relation to applicable regulations and laws (Mack, 2003).  For e.g. the management accountant of the Company has not calculated the cost of the products & services in relation to proper rules and regulation and this shows that management accountant has violated the standard of competence.

Confidentiality: This principle reflects that the management accountant should keep the information private and confidential except when the disclosure is legally or authorized required. This principle can be violated if management accountant of the company disclose the private and confidential information of the company to third parties such as clients and users. For e.g. In ABC firm, the management accountant of the company has revealed the secret information of the Company which shows that accountant has violated the confidentiality standard.

Integrity: This principle recommends to the management accountants that they should not indulged in the activities which might disregard the profession (Drucy, 2004). This principle can be violated by the cost and management accountants if they indulge in the activities which might offer them money and promotion. For example: In ABC Company, the management accountant has decided to charge cost more from the project in order to increase the opportunities for him.

Credibility: This principle reveals all the relevant information which would reasonably be anticipated to persuade the intended user’s understanding of recommendations, reports and analyses (Smith, 2007). In general, this principle can be violated by the cost accountants if they don’t disclose all the relevant information objectively and fairly. For e.g. In ABC Company, the management accountant of the Company has not disclosed all the information to the intended users about the product and services and this type of behavior would ultimately violate the credibility principle. Part B Ethics Case Studies

BY P2-6

Who are the stakeholders in this situation?

Normally, stakeholders play a very crucial role in the organization. It has been viewed from the case that, SEK Printing offers printing services to numerous corporate clients. The stakeholders of the SEK in this situation are Betty Keiser controller of the Company and President of the Company. In, fact president of the Company wanted the controller to find the path to charge more costs to any project that was on a cost-plus basis.

What are the ethical issues in this situation?

According to the case, ethical issue has been identified like president of the Company because of his benefits he wanted the controller of the Company to find the path to charge more costs to any project that was on a cost-plus basis. In, fact it has been examined from the case study that President was looking for the enhanced opportunities that was the main reason he wanted the controller to charge more costs to any projects. In general, thinking of own benefit does not come under the ethical consideration. The ethical issue for the controller is to investigate the path for charging more cost to any project.

What would you do if you were Betty Keiser?

If I were Betty Keiser then I would discuss with President of the Company that increasing of the cost on the project is not the right way for increasing the profits of the Company (Bogsnes, 2009).  It has also been viewed that main motive for increasing the profits of the Company was President of the Company was looking for the enhanced opportunities due to increased profit. According to me, charging more costs to the cost-plus projects is not the right way to meet the stated goals of the Company.

B2P4-6

Who are the Stakeholders in this situation?

According to the case study, there are two stakeholders in this situation such as Marcum Lim cost accountant and Ray Pon production manager for the 18 horsepower super cut model. Both the Stakeholders play a crucial role in the organization because cost accountant was calculating new product cost for three model of the Company whereas Production manager manages the production of 18 horse power super cut model.

What, If any are the ethical considerations in this situation?

According to the case study, there is one ethical consideration such as Marcus’s new product costs for the three models show that the traditional costing system of the Company has been considerably under costing the model of 18 horse power Super cut (Hope & Fraser, 2003).  It has been viewed from the case study that the cost accountant of the Company before completing his reporting and analysis was approached by his friend Ray pon production manager of the 18-horsepower super cut model. The ethical consideration for the cost accountant of the Company to chose one among the two like friend or Company. If cost accountant of the Company submit his reporting without taking into consideration his friend point of view then his friend would lose the job. At last, the ethical considerations for the cost accountant to choose one among the two like the company or the friend.

What are the Marcus’s ethical obligations to the Company? To his friend?

The Marcus ethical obligation to the Company is to submit the reporting and analysis without changing of any figures (Jeffreys, 2011).  Being, a cost accountant he must show each and every cost clearly so the management of the company can take accurate decision in respect to cost. On the other side, the Marcus’s ethical obligation to his friend is to explain him changing the figures is not the right way to save the line from being discontinued. It is important to tell the management of the company that the traditional costing system had been considerably under costing the 18 horse power super cut.

Part C

Essay 1The cost of the service and the product is considered as the amount that the organization spends for producing it. Cost referred as summation of variable and fixed expenses for manufacturing service or product. The main objective of the business is to produce a profit. It is very clear that knowing the cost of the services and products the organization supplies is fundamental for the effective management of the organization (Hope & Fraser, 2003).  The cost of the service or product fulfills some level which will cover the company cost of delivering and producing its offering. The price which the company chooses for its services and products shall change accordingly to its long period strategy of the marketing. In simple words, pricing is implemented as the tool for achieving complete goals of the marketing.

It has been examined that small businesses are not able to do so, because small business don’t know how to cost their services and products. Pricing considered as the vital component in accomplishing the profit that all companies may control. The actual cost of the service or product is comprised of 2 parts such as indirect and direct costs (Young, 2003).  When doing finding of the cost, the product and service being evaluated and should be clearly defined and identified with the designated result which shows the objectives, mission and goal to which the product associates (Smith, 2007).  For each service and product, both indirect and direct cost should be searched. Direct costs comprise personnel recruited for new supplies and designated products whereas indirect costs may sometimes be complex for apportionment and show what may otherwise seemed as the operational expenses. Before setting of the prices, the manufacturer needs to understand the market of the product, costs, distribution and competition.  The place of the market reacts quickly to international competition and technological advances. In general, policy and pricing structure are major elements of the public image and are vital to keeping and securing the clientele.

It has been examined that pricing for the service business might be more difficult as compared to retail pricing. However, the outcome is similar, desired profit, operating expenses and cost equals the price of the service (Jeffreys, 2011).  The foundation to the success depends upon the well planned policies. The companies should form policies and monitor operating costs and prices for ensuring a profit. Pricing must be in accordance with the excellence of advantages which the business offers for its users, whereas bearing in the mind about the prices that the competitors charge. For maximize the profitability, what advantages that the customers have by using the service or product. In general, user perceives the product value and finds out the maximum price users shall pay. Perceived excellence is formed by the marketing messages, established reputation, sales environments and packaging. The significant element of the perceived value is evaluation among prospects and customers. For example cost plus pricing takes into consideration the cost of manufacturing service or product which adds the amount and required to create the profit. It is usually suited to the business which transacts with high volumes and work in markets which is dominated by the competition on the price. It is viewed that owner operators never properly recognize the producing costs what they actually sell. This kind of misunderstanding creates lower profits and poor decisions (Drucy, 2004). It becomes significant for the process of the management to review the methods of the costing periodically.  In general, most of the business owners shall know the entire cost of services and products but they don’t know the cost of each and every individual item (Andrews, 2004).   Yet, decisions of the costing may have significant impacts for marketing organization and attention offered by marketer for pricing and considered as the significant attention for more recognizable activities of the marketing (Partnerships Victoria, 2001).  Lastly it can be said that knowledge of the cost of services and products supplied informs management decision making throughout the organization, because knowing cost of services and products gives the idea about the expenditures incurred on manufacturing of products and services and inform the consumers about the cost structure of the product. In general, cost is the element which persuades the consumer to buy the product or not. Cost is decided by the management of the organization by taking into consideration all factors like competitors, margin and profit, distribution and competition.

Essay 2

In general, budget considered as the comprehensive and formal plan which estimates the possible income and expenditures for the organization throughout a particular period. Yes, it is true it is easy to budget but it is more difficult to budget effectively. In general, budgeting explains the entire process of using and preparing the budget (Andrews, 2004).  Normally, budgets are referred as valuable tools for control and planning of finances, budgeting impacts almost each kind of the organization-from large companies and governments to the small business and individuals and families. The small business normally indulges in the budgeting for finding out the most effective strategies for creating money and diversifying its base of the asset. Budgeting may assist the company to use its limited human and financial resources in the path that exploit current opportunities of the business. The process of the budget is chronological in nature for e.g. each budget depends upon the earlier budget, so no any budget could be formed without data from previous budget. Budgets might be widely categorized according to how the company uses and makes its money. Distinct budgets might be implemented for various applications. Few budgets transact with income sources from interest, income from dividend, sales and another sources. Extra kinds of budgets are worried with spending funds for the capital expenditure like property, plant and equipment and few budgets estimate the sums of funds the organization shall have at the year –end.

The systems of the Budgeting serve numerous purposes with control and planning being two of significant functions. The authors reveal that it is on the management to choose which function must be more sufficient for the enterprise. For e.g. the authors claim that the greater firms must concentrate on coordination and control aspects of the budgeting, while small companies must be more focused with the aspects of the planning. Planning involves making objectives for enterprise and while control involves the accomplishment of the goals.  Small business which operates in competitive and uncertain environments is required to control and plan the operations because this shall assist managers to conduct the business successfully. Budgeting might be costly and time consuming for the small business but it can offer a numerous benefits, comprising the enhanced costs awareness and coordination efforts regarding the goals of the Company, enhanced communication and the background for the evaluation of the performance.

The factors that managers should take into account to help ensure that the budgeting system assists an organization achieve its objectives. To become successful, budgets must be formed in relation with the subsequent principles:

Quantifiable and Realistic: In the world of restricted sources, the company should apportion its own inputs and resources by forming objectives and goals that are sound attainable. Realism engenders commitment and loyalty between workers and encouraging them to their greatest performance. In summation, broad discrepancies impacted by the non-realistic projections and have negative consequence on company credit worthiness and might dissuade the lenders. The company analyzes every possible activity to find out those which shall result in most adequate allocation of the resource. The company achieves this with the help of costs quantification and advantages of activities.

Historical:  The budget shows an apparent understanding of previous outcomes and sense of estimated future alterations. Whereas, previous outcomes might not be the perfect estimator and they flag significant benchmarks and events.

Period Budget: The period of the budget should be of logical length. The smaller the period, greater will be the requirement for control and detail mechanisms (Hope & Fraser, 2003).  The duration of period of the budget determines the times restrictions for initiating efficient changes.  Though, projects and plans distinct in scope and length and the company estimates its budgets on the basis of 12-month.

Standardized Managers should use standardized formulas and techniques of the research for facilitating the process of the budget.  This enhances the consistency and efficiency of the quality and input of planning. Computer-related accounting, reporting and analyzing not only provide managers with complete and real time results but also provides flexibility for testing of innovative models and comprises high-powered and relevant tables and chart with significantly small effort.

Inclusive:  Efficient organizations decentralize the process of the budget down to smallest relevant stage of the responsibility. Those who are accountable for the outcomes may take initiative in formation of budgets and learn how activities are associated with other divisions of the organization. Participants from several segments meet for exchanging objectives and ideas, for discovering innovative ideas and to reduce counterproductive programs and redundancies. In this path, those who are accountable work harder and have more capability for the success. Successively Reviewed Decentralization doesn’t prohibit the evaluation of the budget proposal at the successive levels of the management.

Formally disseminated and adopted: In, fact top management accepts the budgets and shares their actions to responsible personnel. The management has formed the budget and dispersed it in the proper manner.

 Frequently Evaluated: In, fact parties may use the budgets and their budgets of the department for guidance and information. On the daily basis, as per the schedule and in standardized method, they evaluate real results with its budgets. For the yearly budget, managers generally report quarterly, half yearly and yearly (Bogsnes, 2009).  The accountant performs the crucial function in reporting function. The Company implements well-designed program of the budget as the efficient procedure for predicting actual results throughout the particular period, coordinating and planning its several operations and monitoring the usage of budget plans.

To do this efficiently, the company takes the process of the budgeting for evaluating the opportunities of the business accessible to it. The Company should plan long term strategy that explains its entire effort in creation of market share, enhancing revenues and minimizing costs. The Company should also plan short term strategy for enhancing the profits, controlling of costs and mechanisms of the control for creating modifications in strategies whenever it is necessary.

At last, it can be said that the budgeting considered as the process of controlling and planning for the assets utilization in activities of the business. It is referred as the comprehensive and formal process that gives detail of operations, finance and sales and hence offering management with the guidelines of the performance (Young, 2003). With the help of budgeting, management finds out the profitable implementation of the restricted resources. It is very clear that process of the budgeting enhances ability of the management to efficiently deploy the resources and initiate alterations to plan in the timely manner.

  If you want Law management Assignment Help study samples to help you write professional custom essay’s and essay writing help.

Receive assured help from our talented and expert writers! Did you buy assignment and assignment writing services from our experts in a very affordable price.

To get more information, please contact us or visit www.myassignmenthelp.Com