For each of the situations listed, identify the primary standard from the IMA Statement of Ethical Professional Practice that is violated (competence, confidentiality, integrity, or credibility).

1. Paige is an accountant for Brookdale Natural Foods, a national grocery chain. Paige prepares internal reports with the breakeven volumes for each division listed. She does not explain (or provide disclosure) that the breakeven numbers listed are based on the sales mix from the past year, even though the sales mix is expected to change this year. If the sales mix during the current year were to change, breakeven volumes would be significantly impacted.

2. Jermaine and Alex work at the same company. Jermaine, the manager of a production department, buys lunch for Alex, who works in Accounting. Alex is preparing the monthly projections for the various production departments. Jermaine wants Alex to be conservative in the estimates of variable costs, so that Jermaine is more likely to obtain funding for an upcoming project.

3. Yulin works in Accounting at a chain of car dealerships. Yulin’s best friend, Kasey, is looking for a new car. Yulin shares the actual dealer variable cost of the model with Kasey so that Kasey can negotiate a better deal.

4. Sierra provides reports to key decision makers based on CVP assumptions despite knowing that the decision makers are looking at situations that would be outside of the company’s current relevant range.

5. Connor’s company has signed them up for outside training on operating leverage and cost structures. Connor decides to skip the training, figuring that Connor already does their job well and does not need continuing education.