Why do we have to change things? mumbled Clayton Huff. We have always done it this way. No need to change now. Clayton is returning to his workstation after a departmental meeting where the controller explained how an ABC system works. The controller wants all employees to help in the development process of the system by documenting their activities & the time spent on each activity. Then the accounting department will create cost pools & compute allocation rates.

Clayton enjoys his job in production & is quite at it. In fact, he is so efficient that he can get as many units completed in a shift as the other workers & not work nearly as hard. Clayton is also smart enough to realize that if he reports his actual time on activities, management will find out how much he has been goofing off. Clayton decides the best thing to do is fudge the numbers to make it look like he takes longer to make the product than he actually does. Should Clayton report his actual time or adjust it? What would you recommend?