Page 228 - E1 Integrated Workbook STUDENT 2018

Organisational Management

11 A, B, C, E

Option 1: Integrity implies that a person should be straightforward and honest in
all business relationships. The management accountant is not being honest
because he is helping to produce budgets he knows to be inaccurate.

Option 2: Objectivity: By taking the football tickets in exchange for altering
figures the management accountant is allowing bias to override business
judgements.

Option 3: The management accountant’s skills are not under question and so
this principle does not appear to have been breached.

Option 4: The management accountant does not appear to have breached
confidentiality. The conversations Stephanie overheard involved Alpha staff and
so no information has been leaked.

Option 5: The management accountant has not behaved professionally and in
line with CIMA expectations. In addition to using incorrect figures in the budgets
he has tried to influence Stephanie to do the same.

12 A, C

The definition in B is that of CSR – not sustainability. Sustainability and CSR
may cost more in the short term, but it is possible to make short-term savings.
For example, becoming more energy efficient could allow an organisation to
save money on fuel bills in the short term.

13 B

This will serve as a financial motivator and will align directors’ interests with
those of the shareholders.

14 C only

Financial accounting produces mainly historical information.

15 A, B and E

Budgets do not directly help to make investment decisions

Budgets will restrain managers from acting completely independently.

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