The manager of a profit center of a large electronics manufacturing corporation made some projections regarding sales and profits for the upcoming final quarter of the year.The managers' performance evaluation and compensation depended significantly on his ability to meet budget goals.The manager discovered that the final quarter would have to be a particularly good quarter in order to meet these goals.He decided to implement a sales program offering liberal payment terms in order to pull some sales that would normally occur next year into the current year.Customers accepting delivery in the fourth quarter would not have to pay the invoice for 140 days.Also,he sold some equipment that was not being used and realized a significant profit on the sale.
Are these actions ethical? Why or why not?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q127: Snacking Macs, Inc., currently manufactures three different
Q129: Respond to this comment: "Since cost accountants
Q132: Compare financial accounting and cost accounting using
Q136: Morgantown Manufacturing produces electronic storage devices,and
Q136: The controller of one division of IntroTel,
Q138: What are characteristics of information used in
Q138: The list of representative cost drivers
Q141: The New York Times recently reported that
Q142: Traditionally, companies in the United States have
Q186: You have been employed as an entry-level
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents