Paula Woodward is the head of the Information Systems Department at Mo Manufacturing Company. Roland Randolph, the
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You should have been there.”
Randolph responds, “Job order costing has provided accurate information for this product line for more than 15 years. Why should we change just because we’ve purchased a new machine? We’ve purchased several machines for this line over the years.
And as for your seminar, I don’t need to learn about costing methods. I was exposed to them all when I studied management accounting in the 1970s.”
Is Randolph’s behavior ethical? If not, what has he done wrong? What can Woodward do if Randolph continues to refuse to update the product costing system?
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Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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