Cost Accounting

Zamboni 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. Bryan Nadman, an assistant cost accountant, then charges the employee an amount based on Zamboni’s net purchase cost.

Bryan 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, Bryan 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.

As we previously discussed, the Institute of Management Accountants (IMA) has established four principles of ethical conduct for its members: honesty, fairness, objectivity, and responsibility.  If you need to review, these principles are available at the IMA website:

Step 1 – Using the information provided above, evaluate Bryan’s behavior in this matter.  Make sure to reference the principles of ethical conduct and how the relate in this case.  Your discussion should be at least 500 words in length.


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