Adeline was studying the inventory levels at her shop, realizing that there was a significant amount of work yet to be done on the jobs in process. Last year, management gave surprise bonuses to the production workers because they had completed the majority of items that had been started. In anticipation of the same potential for a bonus this year, she wondered if she could misstate the level of completion to make it look like the jobs were closer to being finished.

1. 
   
2. If Adeline were to do this, who might be affected, and how would they be affected, both this period and next period?