Question

ob Costing and Ethics 7-59. Chuck Moore supervises two consulting jobs for the firm of Price and Waters, LLP, which is a consulting firm that helps organizations become more efficient. One of the consulting jobs is for the U.S. Department of Defense and the other is for General Motors, Inc. Chuck received the monthly cost reports about three weeks after month-end. The General Motors job contained bad news. After getting up his nerve, Chuck called his boss the following week to pass on the bad news. “The General Motors job is only half done, but we have already spent all of the $1 million that we expected to spend on that job,” he said. “However, we have spent only $500,000 of the $800,000 that we expected to spend on the U.S. Department of Defense job, even though we are 90 percent done with the work.” His boss told Chuck, “Assign the rest of the costs needed to complete the General Motors job to your U.S. Department of Defense job. We’re under budget on that job and we get reimbursed for costs on government jobs.” Required: What should Chuck do? Does it matter that Chuck’s consulting firm is reimbursed for costs on the government jobs? Explain. Discuss this case using the steps for analyzing an ethical dilemma: Find the facts involved in the case Find the ethical issues and stakeholders What values are questioned in this case? What are the alternatives? ( list 3) Evaluate the alternatives in terms of the values. What are the consequences of the alternatives? What is the correct course of action in this case based on your assessment above?

Answer 1

Answer:

Chuck is going about as an expert and helping associations turn out to be more proficient. In the above situation since the activity for General Motors has gone over spending plan , he should advise his manager to consider the customer and disclose to them the explanations behind going over budget.Allocating US offices barrier spending plan to General Motors isn't right.

It doesn't make a difference regardless of whether Chuck's organization is repaid for expenses on government employments or not. They should just look for repayment for honest to goodness expenses and act with respectability.

The moral issue for this situation is whether it is alright to sell out a customer's trust for individual gain. The partners are the US bureau of barrier and General engines Ic. The qualities addressed for this situation are trustworthiness and genuineness.

The options are to proceed with the arrangement of occupying US divisions spending plan to GM or to tell the customer (GM) reality. As a man of uprightness, the last alternative ought to be picked.