Ethics Case
Essay Preview: Ethics Case
Report this essay
NATIONAL UNIVERSITY OF IRELAND, DUBLIN
UNIVERSITY COLLEGE DUBLIN
ETHICS ISSUE OF CASE: COLUMBUS PARK-WASTE TREATMENT FACILITY
Class: BSC 16(F) A
Module title: Management Accounting
Essay title: Pre course assignment
Lecturers: Jane Cao
Student Number and Name:
11207370 Li Guangxue
Word count: 898 words
Introduction
In this case, Ann Paxton, as the manager of the waste treatment facility for the city of Columbus Park, Illinois, was thinking to increase the expense budget of next year. In her idea, the city controller might not approve the total budget she submitted and other expenses could incur. Moreover, Ann wanted to earn any chance for a promotion to other department, by keep the total expenses within the budget.
Data Analysis
Firstly, the cost information must be analysed in order to understand Anns plan.
9,000,000 gallons of waste would be required to be processed in the next year. Unit variable costs are about $0.20, total fixed costs are about $1,400,000. Ann wanted to submit a budget of around $3.9 million. Situations that would affect the budget are 10% reduce by the city controller, over $200,000 new labor costs and 500,000 extra wastes. Other situations may also happen.
Minimum budget
Maximum budget
Units processed/gallons
9,000,000
9,500,000
Variable costs (budgeted at $0.20 per gallon)
$1,800,000
$1,900,000
Fixed costs:
1,400,000
1,600,000 (+new labor costs)
Total costs
3,200,000
3,500,000
+10%reduce(/0.9)
3,888.889
As the above calculation shown, Anns department has a minimum expense budget of $3,2million. With the additional situations, the budget would go up to about $3.9 million, same as Anns plan.
Ethical Decision Making
To check Anns decision ethical or not, there is a Seven-Question Framework for Ethical Decision Making that can be used (Jiambalvo, 2010, p18).
When evaluation a decision, ask:
What decision alternatives are available?
Ann wanted to submit the budget of