Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 22

Joe Felan is the production manager at Utex Corporation. He was recently quoted as saying. "Since management reports aren't subject to generally accepted accounting principles, and they aren't directly used by outside investors and creditors, it's really okay for managers to manipulate the reports as they see fit." Do you agree with Felan's statement? Defend your answer.