1. Jason is a staff accountant for a large company that does a lot of work with the Defense Department. He has just discovered that overhead costs for some of the company's private customers has been incorrectly charged to government contracts. It appears that several people on the management team have knowledge, and may have assisted, in the over-charging of costs to these contracts, although he is not sure if the controller was involved. What are his ethical responsibilities and choices? Do you think Jason should bring his discoveries to his direct supervisor, or the members of the management team who know about this?
2. You are considering lending a car to a friend so that he can drive to New Orleans. What costs would you ask him to reimburse? How would your answer change if you decided to go along? Identify the possible options, and explain your choices. Be specific! Would you include things such as auto insurance, oil change, or gas? Why or why not?