(SOLVED) Jacek Zielinski the budget manager at Jelenia Silesia a manufacturer of


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Jacek Zielinski, the budget manager at Jelenia-Silesia, a manufacturer of child furniture and carriages, is working on the 2008 annual budget. In discussions with Sylwester Czereszewski, the sales manager, Jacek discovers that Sylwester’s sales projections are lower than what Sylwester believes are actually achievable. When Jacek asked Sylwester about this, Sylwester said, ‘Well, we don’t want to fall short of the sales projections, so we generally give ourselves a little breathing room by lowering the sales projections anywhere from 5 to 10%.’ Jacek also finds that Andrzej Sazanowicz, the production manager, makes similar adjustments. He pads budgeted costs, adding 10% to estimated costs.
Required
As a management accountant, should Jacek take the position that the behaviour described by Sylwester and Andrzej is unethical?

Answer

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