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Case Study Session: Professional Competence And Due Care

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Question:

Write about the Case Study Session for Professional Competence and Due Care.

 

Answer:

Viable pricing strategies can be pursued in order to attain competitive advantage by Annette. By considering the case facts, it can be noticed that Advance model is less profitable but other two models are capable to earn good profits. Thus, for Advance model break even pricing can be used to ensure that all costs are recovered and meanwhile improvement can be made in the product line to develop better product portfolio. For the purpose of Standard and Premium product line should make use of value pricing. In this approach price must be set on the basis of their perceived value of provided product and services. With the applied approach, customers will be satisfied and business will be in position to earn good profits so it will be win-win situation for both.

 

Case facts shows clear contradiction of ethical aspect of professional competence and due care by Steve Brown. In accordance with this code of ethics, accountants are required to apply their skills and knowledge for analysing business situations in order to make viable decision instead of considering traditional approach. In the present case, Steve is ready consider actual cost structure due to mere fact that there is significant difference in cost. Further, he is giving wrong recommendation to Annette by suggesting him to hide actual cost reports from Barry by making window dressing in number. Being in position of account he is required to show accurate position of business by recording accounting facts and figures in a viable manner irrespective of consequences. This aspect shows clear contradiction of ethics of integrity.

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