If a firm is considering completing a contract for a government entity that uses a cost$-$plus strategy for price negotiation, what is the most ethical action the firm can take regarding pricing?

Multiple Choice

Reject the contract entirely.

Allocate more fixed costs to the contract.

Only allocate direct costs to the contract and ignore any indirect costs that require any sort of allocation.

Perform the contract work at a major discount.

Limit the costs of the contract to direct costs and fixed costs that have an easily identifiable cause and effect relationship.