Although maintaining the current plant- wide rate Is probably not Illegal, its continuation has one purpose: to extract profits from government business. Doug knows the plant-wide rate Is not accurately assigning overhead costs to various Jobs and Is willing to alter the assignments on an …
To continue overpricing knowing the new overhead rates would more than make up for any lost profits from the government sector through more completive bidding In the private sector is a clear indication of greed. While managers have an obligation to maximize profit and shareholders …
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