The ABC team found that one of the company’s products was losing money because it was using significant resources of setups, customer handling, and material handling. The chief financial officer asked the team to ignore the findings because some workers could be laid off and the chief executive officer liked the product.

a. Did the CFO violate the IMA’s Standards of Ethical Professional Practice? This was discussed as part of Chapter 1. Refer to Chapter 1 for the specific standards.

b. Which actions could have been taken to present the ABC results but perhaps turn the product in question into a profitable product?