Prior accounting literature has recognized the need for integrating ethics with accounting education, and suggested that films and video cases are very useful for discussing ethics in the classroom. This teaching note discusses a widely circulated video case on ethics in management accounting. The teaching note presents a framework for analysis and shows how the Standards of Ethical Conduct for Management Accountants issued by the Institute of Management Accounts can be applied to the case in resolving ethical problems. Additionally, it discusses how changes in the case regarding performance measures, budgeting, incentive policies, and the type of information used could influence the company's ethical environment. Although this teaching note is specific to the case, the general approach outlined herein may be used for other ethics cases in management accounting.