During data collection for the transition from an old management accounting system to a new activity-based cost management system, you see a manager’s reported time allotments. You know that the data supplied by the manager are completely false. You confront the manager, and she states that she is worried that if she reports how she actually spends her time, her

Chapter 9, Questions #71
During data collection for the transition from an old management accounting system to a new activity-based cost management system, you see a manager’s reported time allotments. You know that the data supplied by the manager are completely false. You confront the manager, and she states that she is worried that if she reports how she actually spends her time, her job will be altered, and it will also be found out that she is really not performing very well. She implores you not to tell anyone because she has needed to take time off to care for her chronically ill parents and needs the pay to help cover her parents’ medical expenses. What actions should you take? Explain.

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Related Book For answer-question

Management Accounting Information for Decision-Making and Strategy Execution

6th Edition

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

ISBN: 978-0137024971