(Ethics essay) Jack Austin is a plant manager who has done a good job of controlling some overhead costs during the current period and a poor job of controlling others. Austin’s boss has asked him for a variance report for the period.

a. Discuss the ethics of using a two-variance approach to report the over¬ head variances rather than a three- or four-variance approach.

b. If Austin does not provide his boss detailed information on the individ¬ ual cost components and their related variances, can the boss judge Austin’s performance during the period? Defend your answer.

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