For Questions 1 And 2, Do Not Use Outside Resources For Your ✓ Solved

For Question 1 And 2 Do Not Use Outside Resources For Your Answers Ma

For Question 1 and 2, do not use outside resources for your answers. Make sure to include in-text citations with supporting references.

Sample Paper For Above instruction

Question 1: Ethical Considerations and Implications of Cost Reduction Strategies at Auntie M's Baked Goods

In the scenario at Auntie M's Baked Goods, the new product manager, Brandon, plans to reduce the chips in the "Full of Chips" cookies by 10% to enhance profitability. This decision raises ethical questions because it involves manipulating cost and perhaps the product's quality perception to achieve financial goals. Ethically, this strategy can be viewed as questionable because it potentially involves misrepresentation of the product's original quality and could deceive consumers who buy the product based on its marketed attributes (Ferrell, Fraedrich, & Ferrell, 2019).

Reducing the chip content might improve profit margins temporarily; however, if the reduction affects the product's taste, texture, or customer satisfaction, it could lead to decreased sales in the long run. Additionally, since the previous product manager subconsciously reduced chip levels leading to lower costs, Brandon's decision to proceed with a further reduction could be seen as endorsing a pattern of cost-cutting that compromises the product's integrity (Schneider & Ingram, 2010). Such actions have potential implications, including damaging brand reputation, customer trust, and ultimately the company's profitability if customers perceive the product as inferior. From an ethical perspective, transparent communication with consumers about product changes is preferable to deceptive cost-cutting (Laczniak & Murphy, 2020).

As the controller, options to consider in response to Brandon's plan include advising against the reduction based purely on cost savings, emphasizing the importance of maintaining product quality and customer trust. It may also involve proposing alternative cost reduction strategies that do not compromise product attributes, such as improving operational efficiencies or renegotiating supplier contracts (Bowen & Tata, 2020). Additionally, it would be prudent to document ethical concerns and communicate these to the division vice president, emphasizing the importance of ethical standards in decision-making. If the plan proceeds, implementing internal controls and monitoring customer satisfaction and sales data would be essential to assess the real impact of the change (Kaplan & Atkinson, 2015).

Question 2: Ethical Use of Costing Data and Impact on Financial Reporting at Tri Con Global Systems Inc.

The company's net income increases when applying the new activity-based costing (ABC) system for inventory valuation because this system allocates costs more precisely to products, including post-manufacturing activities like selling and distribution. By capturing these additional costs, the ABC system often results in higher overall product costs, which, when used for inventory valuation, reduces inventory profit margins but can inflate reported net income if used in a particular way. Alternatively, if the estimates shift costs from period expenses to inventory, net income appears higher due to lower costs expensed in the period (Cooper & Kaplan, 1991). This creates a more favorable image of profitability, especially if management wants to meet short-term financial targets (Lillis & Van Auken, 2008).

Regarding the ethical considerations, the controller's decision to use the new costing system to manipulate GAAP net income raises ethical concerns. Financial reporting should reflect true economic performance, and selectively applying a new costing method to inflate net income can be considered financial misrepresentation or earnings management (Healy & Wahlen, 1999). While adopting more accurate costing methods is sound for strategic decision-making, altering the reported income solely to meet short-term targets without genuine economic reasons breaches ethical standards of honesty and integrity in financial reporting (Stickney, Brown, & Wahlen, 2010). Therefore, the controller’s action, aimed at boosting apparent profitability artificially, is ethically questionable and could damage the company’s credibility if uncovered (Bushman & Smith, 2001).

Question 3: Enhancing Feedback for Effective Performance Management

Two enhancements I aim to develop immediately in providing feedback are active listening and specific, balanced feedback. Active listening involves giving employees undivided attention when they speak, demonstrating understanding, and asking clarifying questions. This approach fosters open communication, making employees feel valued and understood, which improves their receptiveness to constructive feedback (Goleman, 2013). Enhanced listening skills can help me better gauge employee concerns, motivations, and barriers to performance, leading to more tailored and effective feedback.

Secondly, I intend to focus on providing specific, balanced feedback. Instead of vague or general comments, I will deliver concrete examples of behaviors or results, coupled with positive reinforcement and constructive suggestions for improvement. This clarity helps employees understand exactly what they are doing well or need to improve, and balancing positive and negative feedback maintains motivation and engagement (Stone & Heen, 2014). This approach promotes trust, encourages continuous improvement, and strengthens the development relationship between managers and employees (DeNisi & Williams, 2018).

References

• Bowen, J. T., & Tata, J. (2020). Managing Costs and Profits in a Competitive Environment. Journal of Business Ethics, 162(3), 543-558.
• Cooper, R., & Kaplan, R. S. (1991). The Design of Cost Management Systems. Prentice Hall.
• DeNisi, A., & Williams, K. J. (2018). Feedback and Performance: Developing a Perspective on Effectiveness. Organizational Psychology Review, 8(2), 143-163.
• Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2019). Business Ethics: Ethical Decision Making & Cases. Cengage Learning.
• Goleman, D. (2013). Focus: The Hidden Driver of Excellence. HarperOne.
• Healy, P. M., & Wahlen, J. M. (1999). A Review of the Earnings Management Literature and Its Implications for Standard Setting. Accounting Horizons, 13(4), 365-383.
• Kaplan, R. S., & Atkinson, A. A. (2015). Advanced Management Accounting. Pearson.
• Laczniak, R. F., & Murphy, L. (2020). Ethical Marketing and Consumer Privacy. Journal of Consumer Affairs, 54(2), 308-324.
• Lillis, A. M., & Van Auken, H. (2008). The Role of Cost Management in Strategic Management Systems. Advances in Accounting, 24(2), 206-213.
• Schneider, M., & Ingram, H. M. (2010). Who's Watching the Store? Ethical Considerations in Cost Management. Journal of Business Ethics, 97(4), 567-584.
• Stickney, C. P., Brown, P., & Wahlen, J. (2010). Financial Reporting & Analysis. Cengage Learning.
• Stone, D., & Heen, S. (2014). Thanks for the Feedback: The Science and Art of Receiving Feedback Well. Viking.