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Accounting discussion

05/09/2020 Client: lyjly0 Deadline: 24 Hours

Avett Manufacturing Company allows employees to purchase materials, such as metal and lumber, for personal use at a price equal to the company's cost. To purchase materials, an employee must complete a materials requisition form, which must then be approved by the employee's immediate supervisor. Brian Dadian, an assistant cost accountant, then charges the employee an amount based on Avett's net purchase cost.


Brian is in the process of replacing a deck on his home and has requisitioned lumber for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, Brian reviewed all the purchase invoices for the past year. He then used the lowest price to compute the amount due the company for the lumber.


The Institute of Management Accountants (IMA) is the professional organization for managerial accountants. The IMA has established four principles of ethical conduct for its members: honesty, fairness, objectivity, and responsibility. These principles are available at the IMA Web site: www.imanet.org.



  1. Using the IMA's four principles of ethical conduct, evaluate Brian's behavior.

  2. Has he acted in an ethical manner? Why or why not?

  3. Share any additional thoughts.

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