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

Problem list - Assignment Example17). Unfavorable material price variance is majorly caused by the purchase of better quality and overpriced in the raw materials than the budgeted ones, damage of materials after arrival requiring an urgent reorder on a rush basis. All these f inciteors work to raise the price of raw materials create an unfavorable price variance. The individuals who should be held responsible for unfavorable material price variance is the purchase theatre director 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 undergroundity and integrity require that employees of the organization should act in the utmost benefit of the ships companys interest. In addition the management accountants of any organization are required to maintain the highest standards of ethical apportion in their duties. In this respect they should not use any information to the highest degree 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 Companys 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 additio n, if he were to suggest a cheaper supply of