Analysis of Production Constraints and Ethical Dilemmas in Accounting

This report delves into various aspects of management accounting, starting with the strategic and financial implications of a firm reaching its production constraints, including marketing strategy development, pricing objectives, and capital budgeting techniques. It explains the concept of the relevant range in costing, emphasizing its impact on cost validity and volume discounts. The report addresses an ethical dilemma involving inappropriate adjustments to accounting principles, highlighting the importance of competence, confidentiality, credibility, and integrity. Finally, it provides recommendations for handling such ethical breaches, emphasizing a structured approach based on the APES 110 Code of Ethics, and suggests actions for conflict resolution and addressing losses incurred due to unethical behavior. Desklib offers this and many other solved assignments for students.

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of Student:
Name of University:
Author’s Note:

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Table of Contents
Strategic and financial implications of the firm reaching its production constraint........................2
Relevant range in Costing................................................................................................................2
Advice provided about ethics of Daltrey’s actions..........................................................................3
Actions Recommended for Burdon.................................................................................................3
References........................................................................................................................................4

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Strategic and financial implications of the firm reaching its production constraint
The various types of the strategic implications need to be considered as per the
development of marketing strategy which has been further considered with the factors such
performing marketing analysis, targeting and positioning. Some of the other considerations
which needs to be made for the reaching the production constraint has been identified with the
making the appropriate marketing mix decisions. These needs to be considered with the various
type of the information related to the defining of the product, distribution and promotional
tactics. The Strategic and financial implications need to be also considered with understanding
how quantity demanded varies in terms of the price. The calculation of the cost needs to be based
on the significant assumption related to including the fixed and variable cost associated to the
product. The selection to purchase the upgrade to increase the “productive capacity of the Kiewa
factory” should be further consider with the number of environmental factors. These factors are
likely to evaluate the competitor actions and understanding the legal constraints. Some of the
various types of the other considerations for the decision needs to be based on the setting of the
pricing objectives. For instances, this needs to be related to the fact whetter the company want to
attain the profit maximization, revenue maximization or price stabilization. The determination of
the pricing system needs to be further based on the selecting the appropriate pricing method,
defining discounts and pricing structure. The increasing of the productive capacity cost
considerations needs to be assessed as per the various types of techniques of capital budgeting
and then taking the final decision (Jefrey, 2018).
Relevant range in Costing
The relevant range is considered with a specific activity which is bounded by a
“minimum and maximum amount”. The designated boundaries carry certain costs which can be
expected to be occurring in the future. It needs to be further understood that the outside the
relevant range the expenses and the revenues will most likely to fluctuate from the predictable
volume. The concept of the appropriate range in budget makes the necessary “assumptions about
the relevant range” in which the business is most likely to operate. The relevant range in costing
has been based on the range which is close to the present activity with minor modifications. In
terms of the cost accounting the “cost of a product, service, or activity” is most likely to be valid

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within the relevant range and less valid which is outside the range. In this case, the fixed cost is
“likely to remain fixed only within a relevant range of activity”. In addition to this, the volume
discounts from the suppliers are only valid for certain purchases volume quantities (Bansal,
2014).
Advice provided about ethics of Daltrey’s actions
Based on the given case Daltrey has certainly made a mistake by making inappropriate
adjustments to the fundamental principles which are associated to the professional accountants
for the personal gains. These types of the issues account manipulation of the books of accounts.
It has been further seen that these issues are difficult to handle “based on the information” and
not by the person themselves. There may be significant number of issues which are reasons for
this “deviation and leading to ethically wrong tasks most of which might be due to pressure
being put by the manager”. The main code of the conduct which needs to be implemented in this
case has been identified with “competence, confidentiality, credibility and integrity” (Mehta &
Moonat, 2017).
Actions Recommended for Burdon
The main recommendations to Burdon will be handle the case carefully. This needs to be
ensured by following a structural approach which has been setup as “provided in APES 110
Code of Ethics for Professional Accountants for the members in business for assisting ethical
decision making”. At first Burdon needs to point out the fundamental principle which has been
defined in the involved issue. As per the above decision, it is important figure out the affected
parties. The next important recommendation has been seen to be associated to the figuring out
the procedure for conflict resolutions which exists in the organizations. It needs to be further
observed that the actions taken up by Daltrey are incurring losses on account paying bonuses
when it was not due. It is also important that the bonus is considered on the operating profit and
depreciation included in case of the operating profit (Ahinful et al., 2017).

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References
Ahinful, G. S., Addo, S., Boateng, F. O., & Danquah, J. B. (2017). Ac
Bansal, A. (2014). An empirical study of teaching ethics on accountancy students. International
Journal of Business and Administration Research Review, 1(3), 152-157.
Jefrey, C. (Ed.). (2018). Research on professional responsibility and ethics in accounting.
Emerald Publishing Limited.
Mehta, N. K., & Moonat, S. C. (2017). SPIRITUAL PRACTICES AND ACCOUNTING
PROFESSIONALS: EMERGING SCENARIO. International Education and Research
Journal, 3(5).