cost accounting

Why and how might managers manipulate their monthly estimates of percentage of completion and level of inventory? McNall’s first reaction is to contact each plant controller and discuss the problem raised by the anony- mous communications. Is that a good idea? Assume that each plant controller’s primary reporting responsibility is to the plant manager and that each plant controller receives the phone call from McNall mentioned in requirement 2. What is the ethical responsibility of each plant controller (a) to Amanda McNall and (b) to Scott Quarry in relation to the equivalent-unit and inventory information each plant provides? How might McNall learn whether the data provided by particular plants are being manipulated?

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