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Farmer Frank's produces items from local farm products and distributes them to supermarkets. Over the years, pricee competition has become increasingly important, so Susan Kramer,
Farmer Frank's produces items from local farm products and distributes them to supermarkets. Over the years, pricee competition has become increasingly important, so Susan Kramer, the company's controller, is planning to implement a standard cost system for Farmer Frank's. She asked her cost accountant, Margaret Chang, to gather cost information on the production of blueberry preserves (Farmer Frank's most popular product). Margaret reported that blueberries cost $.75 per quart, the pricee she intends to pay for her good friend who has been operating a blueberry farm that has be unprofitable for the last few years. Because of an oversupply in market, the price for blueberries has dropped to $.60 per quart. Margaret is sure that the $.75 price will be enough to pull her friend's farm out of the red and into the black. Required. Is Margaret's behavior regarding the cost information she provided to Susan unethical? Explain. A simple write-up of 1 page
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