Makers Company manufactures dollhouses in a continuous process. Various customizing features and furnishings are added at the
Question:
Makers Company manufactures dollhouses in a continuous process. Various customizing features and furnishings are added at the end of the process to create the various models that are sold. The basic design and floor plans of all the houses are identical, however.
During the most recent month, the lumber used in trimming the houses was inadvertently recorded as direct materials. At month end, when the error was discovered the Accountant, was told by the Manager not to bother with correcting the error, because the dollar amount of the error was not "worth it." The Accountant believes that the dollar amount is not as important as the quality of the reports. The Accountant wonders whether he would be committing an unethical act if he were to make the changes anyway, despite his superior's telling him not to.
Who are the stakeholders in this situation? Explain how each is affected
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura