Ethics in Managerial Accounting

The video discusses the ethical perspective in managerial accounting, emphasizing the importance of ethical standards to prevent negative economic impacts. It outlines four key ethical concepts: competence, confidentiality, integrity, and credibility, which are essential for maintaining trust and professionalism in accounting practices.

Why is it important to follow ethical standards in business according to managerial accounting?

• To increase profits

• To prevent economic and societal harm

• To improve employee satisfaction

• To reduce taxes

Which of the following is NOT one of the four main ethical concepts in managerial accounting?

• Competence

• Confidentiality

• Profitability

• Credibility

What does the concept of competence in managerial accounting ethics emphasize?

• Sharing information freely

• Ensuring the ability to perform tasks as promised

• Maximizing company profits

• Avoiding legal issues

How does confidentiality play a role in managerial accounting ethics?

• By ensuring all information is shared with everyone

• By keeping sensitive information private and secure

• By promoting transparency in all business dealings

• By focusing on financial gains

What is the significance of credibility in managerial accounting?

• It encourages competition among employees

• It focuses on reducing operational costs

• It ensures trust and reliability in professional claims

• It allows for creative accounting practices