ETHICAL DILEMMA

What to do: Answer the given question.

ETHICAL DILEMMA Nancy Cruz, the vice president for finance, and Margaret Santos, the controller, of ACCCOB2 Manufacturing Company are reviewing the financial ratios of the company for the years 2021 and 2022. The vice president for finance notes that the profit margin on sales ratio has increased from 6% to 12%, a hefty gain for the 2-year period. Cruz is in the process of issuing a media press release that emphasizes the efficiency of ACCCOB2 Manufacturing Company in controlling cost. Santos knows that the difference in ratios is due primarily to an earlier company decision to reduce the estimates of warranty and bad debts expense for 2022. The controller, not sure of her supervisor’s motives, hesitates to suggest to Cruz that the company’s improvement is unrelated to efficiency in controlling cost. To complicate matters, the media press release is scheduled in a few days. 4. Give you opinion on the following statement and cite reasons: "Because Cruz, the vice president, is most directly responsible for the media release, Santos has no real responsibility in this matter."

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