ASPCA: The Ethics Of Capital Budgeting

In fact, the objective of management accounting within a firm or an organization include its supporting of competitive decision made through the collection, process and communication of information that enables firm or organization to plan, monitor and assess its business strategy and processes. More interesting, it is unpopular to find out a person in an organization with “management accountant” tittle regarding to managerial accounting. Actually, lots of people play their role as accountants in the firm; however they typically work as internal auditors, financial, costs or tax accountants. Moreover, their part addresses with the assistance of their firm or organization to gain its objectives and guarantee that it is ethical in order to pursuit

Nonetheless, ASPCA can choose projects which have lower returns as it is unnecessary for them to bring for their shareholders with returns. Furthermore, ASPCA can get “preferential tax breaks” as well as “special debt financial programs” that can decrease considerably WACC (“weighted average cost of capital”). Otherwise, the key distinguishes in ASPCA’s capital budgeting lies in its restricted assets. Sponsors can put their “contractual restrictions” on some specific assets’ usage to guarantee that they are actually used in targeted project. Specifically, according to Issuelab (2013) a sponsor can offer USD 1mil for constructing its new facility; yet limit such sponsoring fund to only that project. In one way, it will bring about additional money for ASPCA, however, the organization has to get particular treatment of accounting and result in changing its outcomes of capital

“Apple has responsibility accounting in its DNA. Every function performed in Apple has a designated person responsible for that specific function. Accountability is strictly enforced, decisions are swift and communication is clear between top and bottom level of employees. The CEO, Timothy Cook (formerly Steven Jobs), makes every critical decision. Steve Jobs used to repeat in front of all new VPs that, “When you're the janitor, reasons matter. Somewhere between the janitor and the CEO, reasons stop mattering”. “This culture of accountability is imbibed in all employees by various events, like weekly meetings between CEO and executive management team. On every Monday, a meeting is conducted to discuss results and strategies of every ongoing project. On every Wednesday, marketing and communication group meetings are held for the same purpose. In both meetings, 80% of the content remains same as previously discussed but 20% vary according to some change drivers (Apple, 2014). In some of the key departments like hardware design department, the entry-level employees used to get feedback on their work by top level executives. The employees either get positive feedback or are told to stop doing stupid