A restaurant manager has received a bonus for each of the past five years based on increases in…
- August 26, 2021/ Finance
A restaurant manager has received a bonus for each of the past five years based on increases in sales revenue that have averaged about 5% over the previous year. The restaurant owner asked to have the sales revenue figures for the last five years adjusted for inflation and the manager had an accountant adjust the figures. On reviewing the results, the manager notices that sales revenues have remained virtually flat, and in one year, sales revenues actually declined slightly. Before submitting the adjusted figures to the owner, the manager decides to change them to show that sales revenue increases averaged approximately 3% a year. By changing the adjusted figures, the manager hopes to show the owner the annual bonuses were justified. Discuss the ethics of this situation.