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Tilly Issac is the assistant controller for Tagwell Corporation, a leading producer of home appliances. Her friend Zack Marsh is the supervisor of the firm's Cookware Department. Marsh has the authority to decide whether parts are purchased from outside vendors or manufactured in his department. Issac recently conducted an internal audit of the parts being manufactured in the Cookware Department, including a comparison of the prices currently charged by vendors for similar parts. She found more than a dozen parts that could be purchased for less than they cost the company to produce. When she approached Marsh about the situation, he replied that if those parts were purchased from outside vendors, two automated machines would be idle for several hours a week. Increased machine idle time would have a negative effect on his performance evaluation and could reduce his yearly bonus. He reminded Issac that he was in charge of the decision to make or purchase those parts and asked her not to pursue the matter any further.

What should Issac do in this situation? Discuss her options

Accounting Basics, Accounting

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