ou are the new managerial accountant for a company that awards its managers with a year-end bonus based on exceeding the target operating profit presented in the yearly budget proposal. The controller tells you that she believes the company will likely have operating profit of $120 million for the year, but asks you to prepare a proposal with projected operating profit of $100 million. She notes that "after all, it is only an estimate, and it would be a shame if the managers missed their bonus again this year after all their hard work." You realize that the only way to project operating profit of $100 million is to make unrealistically low sales estimates and unrealistically high cost estimates. Using the IMA's Statement of Ethical Professional Practice, what guidelines are violated and how should you handle this situation? Create a 100-word response.
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Using the IMA's Statement of Ethical Professional Practice, what guidelines are violated and how should you handle this situation? Create a 100-word response.
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