What additional costs, both monetary and non-monetary might Active Sports incur because of the accountant’s actions?

Case study

Given that Active Sports uses direct labor dollars as its application base, what is the company’s predetermined overhead rate?

Active Sports board of directors has adopted a long-term strategy of maximizing value of the shareholders’ investment.

Explain why the adjustments the accountant made are unethical.

What additional costs, both monetary and non-monetary might Active Sports incur because of the accountant’s actions?