Response to the following problem:
Rita Lane is the accountant for Outdoor Living, a manufacturer of outdoor furniture that is sold through specialty stores and Internet companies. Lane is responsible for reviewing the standard costs. While reviewing the standards for the coming year, two ethical issues arise.
Lane has been approached by Casey Henderson, a former colleague who worked with Lane when they were both employed by a public accounting firm. Henderson has recently started his own firm, Henderson Benchmarking Associates, which collects and sells data on industry benchmarks. He offers to provide Lane with benchmarks for the outdoor furniture industry free of charge if she will provide him with the last three years of Outdoor Living's standard and actual costs. Henderson explains that this is how he obtains most of his firm's benchmarking data. Lane always has a difficult time with the standard-setting process and believes that the benchmark data would be very useful.