preview

Ace Fertilizer Ima Essay

Good Essays

Ace Fertilizer Company

Abby Conroy was tasked with calculating an effective quote for Breeland Ltd., she chose the activity based accounting costing system since it more accurately captures the related costs. A special order was placed by Breeland Ltd. with Ace Fertilizer Company. The did not plan to order more of this product in the future. Based on Ace’s policy, the special order included disposal costs for any used materials in the event no other orders existed for the unused materials at the time the Breeland contract was signed. Abby correctly calculated the total direct material and labor costs and accurately arrived at the indirect costs using the ABC method and used cost activity pools that make sense for the company and …show more content…

Since Georges’ conversation with Josh would be considered confidential in nature with respect to Breeland, it would limit Abby’s permission to inform them of any possible rework of the quote without express consent or approval of George. Since Tom Brennen would need to review any reworked quotes anyway, it doesn’t seem likely that Abby would violate any confidentiality requirements as directed by IMA Standards. Georges’ suggested game plan of billing the products twice could be seen as a misuse of confidential information since he is confident Josh will buy the materials but is still willing to move forward with the Breeland quote without disclosing the possibility of Josh’s purchase to Tom. George may also be engaging in a conflict of interest by using his brother and information gained in a non professional environment as a means to unethically increase revenue. It would also represent a departure from ethics and integrity as an activity that discredits the profession since it lacks communication with Breeland. If Josh does confirm he will purchase the materials within the 20 day usable product window, it would represent additional and more timely information and should signal Abby’s recommendation to revise Breeland’s quote, even if it is after the fact. It is a timing issue. If George does provide the Breeland quote to Tom ‘as is’ and does not discuss with him the

Get Access