Question: Explain why an ABC system may result in different cost allocations compared with a simple allocation basis such as direct labor hours. Identify any

Explain why an ABC system may result in different cost allocations compared with a simple allocation basis such as direct labor hours.

Identify any ethical issues or considerations that should be brought to management's attention.

Discuss management's ethical responsibilities to fairly cost and price products, including any inherent limitations or controls related to pricing.

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