Essays on Vroom Limited - Management Accounting Case Study

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The paper 'Vroom Limited - Management Accounting" is a good example of a finance and accounting case study. Internal stakeholders in this business of Vroom limited are manager Freda Chuse. This is the main decision-maker in the business. The other internal stakeholder is Lucia who is an accountant in business. The internal stakeholders are mainly affected by earnings of the business. Other stakeholder’ s external stakeholder is the government who are they are not working directly but assist in payment of training grants appreciate mechanics. B Freda, the business manager, is taking an action instructing the accountant Lucia to stop the action of exposing to the government the accrued interest of the business while still, the business has a financial constraint.

This is mainly done by Freda to enable them still benefit from grants offered by the government to the company. Lucia takes a step to ask the manager on all matters acted by employees must be as stated by the boss of the business. For smooth operation of the company, there must be a consultation as, by the memorandum of association and understanding, any action taken by the junior workers should be stated by the executive of the business.

As per this case of Freda and Lucia hence the necessity to for Lucia to seek consultation for any consequence should not be a problem to employees.   Ethical issues involved This is collective principles and morals that a business should adopt as it executes its activities. A business should comply with this ethics to enable running and relevant conduct with society to exist. Fundamental issues This essential ethics in the company that mainly explain the trust in a company.

The accountant Lucia takes a step to obey openly the ethic of business operation. The effort is turned down by a manager who wants to benefits breaking the ethic of fundamental by failing to be transparent to the government. The company still benefit from grants paid by the government of $ 100 000 to employ and train apprentice mechanics. The government is trusting that business has an unwavering trust that is contrary to reality to what the business is doing. Decision-Making Issues This ethic entails making a vital step in which it creates an impact on the company.

The manager takes an act deciding that the business should not disclose the accrued interest so as to save guard the revenue from the government. The decision in a business is one that the running is determined from. Accordance with the decision should not have a problem to employees hence Vroom Limited is endangering the integrity of accountant Lucia. Diversity Issues According to the diversity of interest and point of view in business. Lucia takes a step to give her view according to knowledge in business.

This turned down by the boss self-interest who end up earning more commission with an increase in output in the company.   D Lucia takes a step to defer revenue. This action takes them evade being liable in payment of apprentice’ s mechanics. The expense of the business still has a great impact despite not observing the ethics of the running of the business. This has shown that despite the act of violating ethics the business progress still hindered by expenses resulting in the due course.

Reference

Emett, S. A., & Nelson, M. W. (2015). Discussion of “The effect of alternative accounting measurement bases on investors’ assessments of managers’ stewardship”. Accounting, Organizations and Society.

Kaplan, R. S., & Atkinson, A. A. (2015). Advanced management accounting. PHI Learning.

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