You've learned about the many benefits of master budgets, flexible budgets and standard costs in the past two chapters. Now it's time to consider the ethical implications of these managerial accounting tools.

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Consider how budgets and standards are used by managers to plan for the future and control operations. Do you believe that an organization's use of flexible budgets and/or standard costs promotes ethical behavior by its employees? Why or why not? Share your thoughts with your classmates.