Question: Why is it desirable to allocate variable costs and fixed costs separately? Give an example of each type. ============= Do you think there could be

Why is it desirable to allocate variable costs and fixed costs separately? Give an example of each type.

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Do you think there could be ethical concerns as it relates to cost allocation in a manufacturing company with various departments? Discuss why costs might be purposely misclassified to a particular department and the results of such an error (for example, what effect would this have from year to year?)

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