COST ACCOUNTING
COST MANAGEMENT SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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requires the management accountant to mitigate actual conflicts of interest.
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is not a part of the IMA Statement of Ethical Professional Practice.
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is necessary to ensure that the management accountant’s credibility is not impaired.
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is necessary to ensure that the management accountant does not violate confidentiality.
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Detailed explanation-1: -The IMA ethical standard that requires the management accountant to mitigate conflicts of interest requires the management accountant to act with integrity. This means that the management accountant must maintain a high level of ethical standards and must not engage in any unethical behavior.
Detailed explanation-2: -Four standards of ethical conduct in management accountants’ professional activities were developed by the Institute of Management Accountants. The four standards are competence, confidentiality, integrity, and credibility.
Detailed explanation-3: -Members of IMA shall behave ethically. A commitment to ethical professional practice includes overarching principles that express our values and standards that guide member conduct. IMA’s overarching ethical principles include: Honesty, Fairness, Objectivity, and Responsibility.
Detailed explanation-4: -IMA members have a responsibility to comply with and uphold the standards of Competence, Confidentiality, Integrity, and Credibility. Failure to comply may result in disciplinary action.
Detailed explanation-5: -Ethical behavior includes honesty, fairness, integrity and understanding. There are several ways to encourage an ethical workplace culture, including establishing a companywide code of ethics.