Managerial Accounting, v1.0: "Chapter 1, Section 4: Ethical Issues Facing the Accounting Industry"

Mark Twain told us that there are three types of lies, “lies, damned lies and statistics.” Management accountants produce many statistics! How expenses are allocated and how revenue is accounted for is far from set in stone. For example, the owner of a restaurant and bar could choose to take his salary as a dividend and thereby pump up profitability, perhaps to impress or mislead a potential buyer! As a management accountant you need to be aware of ethical issues and studiously avoid practices that mislead and misdirect those who will use your information.