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Week 5 DQs Ethical Issue 22-1
Required Readings
1. Chapter 22: The Master Budget and Responsibility Accounting
2. Chapter 23: Flexible Budgets and Standard Costs
Discussions
The Master Budget and Responsibility Accounting. From Chapter 22, Ethical Issue 22-1.
Ethical Issue 22-1
This case centers on the ethics of padding the budget—and whether the motivation for this action (personal gain or operational efficiency) makes a difference. 
What is the ethical issue?
1. What are my options?
Dunn’s alternatives include:
2. What are the possible consequences?
3. What should I do? 
Flexible Budgets and Standard Costs. What are the benefits of standard costs and how do businesses set those standards?
2. Efficiency
3. Price Fixing
4. Management

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