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

  1. 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?)
  2. Why is it desirable to allocate variable costs and fixed costs separately? Give an example of each type.

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