You as a Car Owner Yes, in most cases you will receive a full refund equal to the unexpired portion of your policy. You are entitled to a refund because you will not consume four full months of coverage that remain on your policy at the time of cancellation. Thus you should receive a check for $400 (or $100 per month for April, May, June, and July).

You as Overnight Auto's Service Department Manager It is true that Overnight Auto might consider the items Betty took home as immaterial for the preparation of its financial records. Thus, Overnight Auto might choose to account for screwdrivers and cans of oil in the easiest and most convenient manner by expensing the costs as they are incurred.

However, the materiality issue is unrelated to the ethical issue of stealing from the company. Betty should either be fired or asked to return and/or replace the missing items. Another option would be to put Betty on probation and monitor supplies for missing items. As the manager of the department you might wish to implement sign-out procedures for supplies that would allow you to monitor the use and location of equipment used in servicing vehicles.