Business Ethics Case Study, Accounting Essay Example | Topics and Well Written Essays - 1000 words

Business Ethics Case Study, Accounting - Essay ExampleThe general carriage identified the current hazardous waste disposal produce as an atomic number 18a in which the phoner could save money. Mr. Hendricks identified equipment that would give the company the capacity to recycle the solvents. He consulted two industry experts to count the cost savings the company would obtain by acquiring the equipment. The experts disagreed on the amount of savings to the company. The abase estimate of cost savings would increase the salary income of the company, but the decrease its return on enthronisation due to the high acquisition cost. The greater cost saving estimate increased both the net income and return on investment of Tie Chemicals.Mr. Hendricks is responsible for presenting the proposal to the general passenger car for approval. He moldiness(prenominal) follow the gener ally accepted accounting principles (GAAP) concerning this bea of accounting. A key GAAP concerning estimat es is the principle of conservatism. This principles states that accountants are required in their work to make estimates and evaluation, deliver opinions, and selecting appropriate procedures. When they are realizing this type of work they must do without neither overstating nor understating the affairs of the business or the results of operation. If a situation arises in which there are two acceptable alternatives for reporting an item, conservatism directs an accountant to choose the alternative that will result in less net income or less asset amount (AccountingCoach).The cost accountant is concerned with all the stakeholders involved. He wants to do what is right for the environment, thus approval of the project would help the environment. The stockholders and the board of directors want to start the maximum profits and return on investment. There is a direct relationship between the managers year end bonuses and the net income of the company.There is decision to be made