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If you send a spammed answer, it will be disliked!! TAC Industries sells heavy equipment to large corporations and to federal, state, and local governments.

If you send a spammed answer, it will be disliked!!

TAC Industries sells heavy equipment to large corporations and to federal, state, and local governments. Corporate sales are the result of a competitive bidding process, where TAC competes against other companies based on selling price. Sales to the government, however, are determined on a cost plus basis, where the selling price is determined by adding a fixed markup percentage to the total job cost. Tandy Lane is the cost accountant for the Equipment Division of TAC Industries Inc. The division is under pressure from senior management to improve income from operations. As Tandy reviewed the divisions job cost sheets, she realized that she could increase the divisions income from operations by moving a portion of the direct labor hours that had been assigned to the job order cost sheets of corporate customers onto the job order costs sheets of government customers. She believed that this would create a winwin for the division by (1) reducing the cost of corporate jobs and (2) increasing the cost of government jobs whose profit is based on a percentage of job cost. Tandy submitted this idea to her division manager, who was impressed by her creative solution for improving the divisions profitability. Is Tandys plan ethical? Explain

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