Do you think there could be ethical concerns as it relates to cost allocation in a manufacturing
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Question:
- Do you think there could be ethical concerns as it relates to cost allocation in a manufacturing company with various departments? Discuss why costs might be purposely misclassified to a particular department and the results of such an error (for example, what effect would this have from year to year?)
- Why is it desirable to allocate variable costs and fixed costs separately? Give an example of each type.
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