Reds Lumber hired a consultant to update its system for reporting the cost of customers. The consultant
Question:
a. What pricing decisions might Red make based on the consultant’s information?
b. Would these be ethical? Why or why not?
c. The consultant comes back to Red’s office and explains that he made a mistake in the analysis. The relation is actually between cost of customer support and the customer’s gender. Does this affect your answers to requirements (a) and (b)?
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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