ETHICS IN MENEGERIAL ACCOUNTING 4
ETHICS IN MENEGERIAL ACCOUNTING
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Running Head: ETHICS IN MENEGERIAL ACCOUNTING 1
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According to the given scenario, the actions taken by Jack were effective since when accounting for accounting errors as per ethics of the job, on should follow certain steps in order to solve the following. He was right for he had to stick facts which is following the given accounted reports to pin point where the error is coming in. Additionally, he had to go through the report and cross check all documented information on the applying overhead costs to ensure he has evidence when he starts handling the issues occurred. Therefore, the action taken by Jackson of going by facts was appropriate (Garrison et al., 2010).
Assuming that after Jackson approaching Brown was unsuccessful, he has to come up with ethics steps applied in accounting in order to help the situation in the business. The following steps will help Jackson to solve the situation in the organization.
· Collecting evidence
· Outlining the ethical problem
· Determining the obligations
· Determining the outcome
· Overlooking at his character and integrity
· Thinking creative on the possible deed
· Checking his guts
· Coming up with appropriate ethical decisions and be ready to handle the opposing arguments
On realizing that even after approaching Jackson he was no successful, he has to go by facts in way that he won’t rush for a conclusion. Jackson has to ask himself various questions like how, when, why and where did the problem arise in the accounting process. Although, going by facts as an evidence maybe challenging due to uncertainty always found within ethical situations. For, instance, in case no available evidence, Jackson has to gather as much evidence as possible before proceeding in order to clarify the type of assumptions he might be making.
It will not be of good for Jackson to rush to a solution without determining the ethical challenges in the situation. He will have to focus on various ethical situations one at a time to be able to handle the issue at hand. At this moment, Jackson has to determine both direct and indirect stakeholders and try to consider how they affected by the problem that arose in the managerial accounting.
It’s upon Jackson to think of the possible negative and positive outcomes for the affected individuals by the decisions of what will be the magnitude of the outcome and the possibility that the outcome will take place. He has to consider both near and long term outcomes. More so, he has to focus on the consequences if the action becomes public concerning the situation experienced in the organization. After, that he should determine relevant rights, principles and justice on the same. Some of these principles are that he should not harm and then formulate a decision making that solely bases on the situation.
Before making up his mind on the issues, Jackson is supposed to overlook at what his relevant society members would take the decision, if it be kind decision from a person of integrity in such situation. When it comes to coming up with the final solution, he should ensure he hasn’t forced himself into unnecessary corner. Having the solutions at hand, he should go a mile and brainstorm in order to come up with an effective solution that favors the parties engaged in the situation. Therefore, to ensure whatever kind of decision he takes will be of help to him and the affected stakeholders, Jackson will have to ultimately overlook at the actions based on the outcomes, personality and obligations concepts (Managerial Accounting, 2016).
Reference
Managerial Accounting: Creating Value in a Dynamic Business Environment (Loose-Leaf) 11e (Hilton/Platt) McGraw-Hill (2016) 9781259727016, Also available in Hardcover ISBN: 9781259569562
Garrison, R. H., Noreen, E. W., Brewer, P. C., & McGowan, A. (2010). Managerial accounting. Issues in Accounting Education, 25(4), 792-793.