Question: While GAAP financial reports must use absorption costing for SEC filings, management may use either Variable or Absorption costing for internal purposes. What ethical dilemmas

While GAAP financial reports must use absorption costing for SEC filings, management may use either Variable or Absorption costing for internal purposes. What ethical dilemmas may be faced when using each of the methods? How would the Income From Operations change based on certain situations be affected? Create a hypothetical situation and explain the possible ethical application.

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