Answer the Following Questions Using the Information Below

question 148

Multiple Choice

Answer the following questions using the information below:
Cannady produces six products. Under their traditional cost system using one cost driver, SR6 costs $168.00 per unit. An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system. The new cost of SR6 was determined to be $178.00 per unit.
-Given this change in the cost ________.

• A) SR6 will now command a higher sales price
• B) SR6 has benefited from the new system
• C) SR6 is definitely more accurately costed
• D) the costing results for SR6 under the new system depend on the adequacy and quality of the estimated cost drivers and costs used by the system

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Definitions:

Dirty Harry Situation

A scenario where ethical principles conflict, often involving a choice between following strict procedures and taking morally questionable actions for the greater good.

Morally Good End

An outcome that is considered ethically positive or beneficial, measured by its contribution to the overall well-being or moral integrity of individuals or society.

Targeted Entrapment

A law enforcement strategy where an officer induces someone to commit a crime they otherwise may not have, typically to catch individuals predisposed to illegal activities.

Morally Problematic

Situations or actions that raise ethical concerns or dilemmas due to potential conflicts with moral principles.