Which of the following can be considered to be unethical behavior?
A) Assigning direct labor costs to Contract A and Contract B using different rates for different employees
B) Assigning different direct material costs to Contract A and Contract B based on usage
C) Assigning overhead costs to Contract A based on labor hours and Contract B based on machine hours
D) Assigning costs of Contract A to Contract B to avoid an unfavorable performance report on Contract A

Question

Quizplus · Accepted Answer

Assigning costs from one contract to another to manipulate financial reports or performance evaluations is unethical because it misrepresents the true financial performance of each contract. This can lead to misleading financial statements and decisions based on inaccurate information.

Which of the Following Can Be Considered to Be Unethical