Task: Ethical Dilemma - Allocation to achieve fairness
The American Acupuncture Association offers continuing professional education courses for its members at its annual meeting. Instructors are paid a fee for each student attending their courses but are charged a fee for overhead costs that is deducted from their compensation. Overhead costs include fees paid to rent instructional equipment such as overhead projectors, provide supplies to participants, and offer refreshments during coffee breaks. The number of courses offered is used as the allocation base for determining the overhead charge. For example, if overhead costs amount to $5,000 and 25 courses are offered, each course is allocated an overhead charge of $200 ($5,000 ÷ 25 courses). Heidi McCarl, who taught one of the courses, received the following statement with her check in payment for her instructional services.
Instructional fees (20 students x $50 per student) $1,000
Less: Overhead charge (200)
Less: Charge for sign language assistant (400)
Amount due instructor $560
Although Ms. McCarl was well aware that one of her students was deaf and required a sign language assistant, she was surprised to find that she was required to absorb the cost of this service.
Required to do:
Question 1: Given that the Americans with Disabilities Act stipulates that the deaf student cannot be charged for the cost of providing sign language, who should be required to pay the cost of sign language services?
Question 2: Explain how allocation can be used to promote fairness in distributing service costs to the disabled. Describe two ways to treat the $240 cost of providing sign language services that improve fairness.