Faith Integration Paper

...

There is also biblical support for a “master budget.” A “master budget” is a device used to bring together all of the relevant pieces in the budgeting and planning process for the operation of a company (Fabozzi, Peterson, & Polimeni, 2010). The master budget can be a useful tool for a company to utilize in planning and measuring progress toward the company goals (Fabozzi et al., 2010). Luke 14:28-29 provides “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it? Otherwise, when he has laid the foundation and is not able to finish, all who see it begin to mock him” (English Standard Version). As already noted, master budgets can help companies plan ahead so that they can effectively reach their goals without embarrassment as Luke 14:28-29 describes.

Ethics & the Calculation of Costs

Charging costs to the wrong jobs can be considered fraud. Doing so is immoral and unlawful if found to be done with intent. Costs that are willfully mischarged distort information for managers who depend on that information to control costs and make financial decisions. Whether intentional or not, the penalties could include, but are not limited to, additional fines and jail time if discovered to be non-compliant with the Sarbanes-Oxley Act of 2002.

Leviticus 19:11 tells us, “‘you shall not steal, nor deal falsely, nor lie to one another” (NKJV). It is crucial to practice ethical behavior, not only for your own good, but so that you may lead others around you in the right direction! Immoral and corrupt actions always surface. Proverbs 11:3 says, “The integrity of the upright will guide them, But the perversity of the unfaithful will destroy them” (NKJV). It is vital that employers arrange observation and training on ethics in the workplace for their employees to maintain proper standards within the firm.

References

Fabozzi, F. J., Peterson Drake, P., & Polimeni, R. S. (2008). The complete CFO

handbook: From accounting to accountability (4th ed.).

Hoboken, N.J: John Wiley & Sons. Retrieved from https://ebookcentral-proquest-com.ezproxy.liberty.edu/lib/liberty/reader.action?docID=316200&ppg=741

Lanen, W. N., Anderson, S. W., & Maher, M. W. (2017). Fundamentals of cost

accounting (5th ed.). New York, NY: McGraw Hill Education.

What is inventory valuation? (n.d.). Retrieved June 26, 2017, from

https://www.accountingcoach.com/blog/what-is-inventory-valuation