Question: Read Accounting Headline 9.14 and consider the implications (externalities) associated with the promotion of tobacco use by cigarette companies. If the allegations made against the

Read Accounting Headline 9.14 and consider the implications (externalities)

associated with the promotion of tobacco use by cigarette companies. If the

allegations made against the tobacco companies were true, what would be the

implications for these companies' reported results if:

(a) conventional financial accounting practices were employed

(b) some form of 'full cost' accounting, which took account of

externalities, was adopted?

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