Problem list Assignment Example | Topics and Well Written Essays - 250 words

Problem list - Assignment Example 17). Unfavorable material price variance is majorly caused by the purchase of better quality and expensive raw materials than the budgeted ones, damage of materials after arrival requiring an urgent reorder on a rush basis. All these factors work to raise the price of raw materials causing an unfavorable price variance. The individuals who should be held responsible for unfavorable material price variance is the purchase manager since he is the one having control over price paid for goods and any other price variations. Unfavorable labor efficiency variance on the other hand is caused by poor quality of raw materials, poorly trained workers, faulty equipments, poor supervision of workers, and poorly motivated workers among others. The person responsible for labor efficiency variance is the production manager, production manager in case he orders the purchase of poor materials and the work center managers responsible for workers in the various departments. Ethical principles of confidentiality and integrity require that employees of the organization should act in the utmost benefit of the company’s interest. In addition the management accountants of any organization are required to maintain the highest standards of ethical conduct in their duties. In this respect they should not use any information about their company for their selfish gain, since confidentiality principle requires them not to disclose any confidential information they have acquired from the company in the course of their work with them. Being Tastee Fruit Company’s Accountant, Adams is exposed to some vital information about the company for example the prices in which it buys its raw materials. By the fact he disclosed this information to his friend; Adams has appeared to and has used the confidential information about the company for an unethical advantage of his friend, a third party to the organization. In addition, if he were to suggest a cheaper supply of