Performance and Ethics Accounting, Finance, SPSS Research Paper

The case assignment is a formal paper 5 to 8 pages in length (not
including title page or reference pages) written in APA style format.
Performance and Ethics
Joy Reed, district manager, performance evaluation and reward is
considered on the basis of adhering to within the confines of the
flexible budget. Joy, the assistants, and operation managers are all
eligible to receive a bonus if actual district net operating income is
between budgeted net operating income and 130 per cent of the net
operating income. The bonuses are based on a fixed percentage of
actual net operating income. Net operating income greater than 130
per cent of budgeted net operating income earn a bonus at the 130 per
cent level (in short, there is an upper limit on bonus payments). If
actual net operating income is less than budgeted net operating
income, no bonuses are awarded. Consider actions taken by Joy:
1. Joy overestimates expenses and underestimates revenues.
This increases the chances of the district in attaining the
budgeted net operating income. Joy believes the action is okay
because it increases the probability of receiving bonuses and
helps keep the high morale of the managers.
2. Near fiscal year end, Joy sees the district will not achieve
budgeted net operating income. So, she tells the sales group to
defer the closing several sales agreements to the next fiscal
year. She also wrote off inventory which was worthless.
Deferring revenues to following year and writing off inventory
in a no-bonus year increases the probability of a bonus for next
year.
3. If toward the end of the year, Joy sees actual net operating
income would likely exceed the 130 per cent limit and she takes
actions similar to those described in Item b.
The following are required for discussion:
*Discuss Joy’s ethical behavior; are her actions right or wrong?
*What role does the company play in enabling the actions taken
by Joy?
*If you are the marketing manager for the district, and receive
instructions to defer closing of sales until the next fiscal year,
what would you do?
*If you are the operations manager, and know your budget has
been padded by the district manager and the padding is
common knowledge among other operations managers, who
support it because it increases the probability of coming under
budget and receiving a bonus, what would you do?
*If you are the district controller, and receive instructions from
the district manager to accelerate the recognition of expenses
which legitimately belong to a future period, what would you
do?
Reference
Mowen, M. M., Hansen, D. R., & Heitger, D. L. (2012). Profit planning. In
Cornerstones of managerial accounting (4th ed., pp. 356-403).
Manson, OH: South-Western Cengage Learning.
The reference shown refers to the basis for the assignment provided. It is not needed or not necessary. It is the source my professor used on creating what is shown, a natural result of using someone else's work as a basis.
Writing Guidelines:
Running head and pagination
Must be double-spaced with 1-inch margins and typed in
12-point Times New Roman
Paper should be proofread for spelling and grammar mistakes
Essays should be in APA style.
You must cite all texts used, including page numbers to avoid
plagiarism
Your paper must have an introduction and conclusion,
supported by research and analysis.