Bledsoe chooses option $3$a$$ above, stating that the amount is immaterial. Comment on the ethical implications of his choice. Do you think that there were any ethical issues when he established the manufacturing overhead rate for $2020$ back in late $2019?$ Refer to the IMA Statement of Ethical Professional Practice.

While technically the difference in adjusted cost of goods sold may have been$$ immaterial, the difference caused Baker to report a

profit

in the first$$ instance, and a

loss

in the second. The company is under pressure to report a

profit

in $2020$ because it is preparing for an acquisition by