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Melbourne Consultants Works for Only Two Clients: a Large For-Profit

Question 156

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Melbourne Consultants works for only two clients: a large for-profit corporation and a small environmental not-for-profit agency. The fee charged for work is based on cost. In deciding how to allocate overhead, the CFO of Melbourne Consultants decides to use the base that allocates the most cost to the large corporation. Is this ethical?

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In general, the answer is that this is n...

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