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Body Product Divisions of World Wide Drugs

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Entr 3120 - Case Preparation Chart

Name of the Case ______Body Product Divisons of World Wide Drugs__

Who is involved?
Ahmed Diba-Controller
Cheryl Kelly – President of Division

What is the issue and/or problem?
The problem was taking the 9.60 litigation costs off the report at the advice of Cheryl Kelly. The advice was to instead report it at the executive meeting which Ahmed Diba was not told about.

Why is it a problem?
It may not be ethical to not report this to the executive committee because it could change how successful the product will be or future lawsuits.

What is the timeline?
1. Report is done with litigation costs included
2. Cheryl Kelly suggest taking it out and presenting it instead.
3. Ahmed Diba takes it out with 16.80 as the variable cost instead.
4. Executive meeting happened without Ahmed Diba one month later.

Determine both relevant and irrelevant information from reading the case.
Relevant
Costs
Litigation cost issues
Lawsuits

Irrelevant location What concepts (from the textbook) can be applied to the case?
-Corporate Governance
-Standards of Ethical Conduct for Practitioners of Management accounting and Financial Management
-Breakeven to see differences in including and excluding litigation cost

What are the options or alternatives?
- quantitative analysis

- qualitative analysis o pros

o cons

Other factors to considerg
What may happen if the executive committee finds out about the litigation costs left out afterwards. (lawsuits)

Recommendations
For Ahmed Diba to make the executive committee aware of the possible litigation costs.

Note – The Case Preparation Chart must be submitted as a hard copy of a word document. Handwritten submissions are not accepted.

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