Business, 25.02.2021 05:50 Absynthe3986

The Southern Division manager of Texcaliber growing concerned that the division will not be able to meet its current period income objectivesThe division uses absorption costing for intersal profit reporting and had an appropriate level of inventory at the beginning of the period. The division manager knows that he can boost production at the end of the period. Tholincreased production will allocate fixed costs over a greater number of units, reducing cost of goods sold and increasing earnings Unfortunately, it unlikely that additional production will be soldresulting in a large ending Inventory balance The division manager has come to Aston , the divisional controller , to determine exactly how much additional production is needed to increase net income enough to meet the division's profit objectives, Aston analyzes the data and determines that the division need to increase inventory by 30% in order to absorb enough fixed costs to meet the division's income abjective. Astasseport this to the division manager: Aston acting ethically?

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The Southern Division manager of Texcaliber growing concerned that the division will not be able to...