ETHICAL ISSUES SURROUNDING ACTIVITY-BASED
COSTING
Xavier Auto Parts, Inc. manufactures a wide range of auto
parts, which it sells to auto manufacturers, primarily in the
United States and Canada.* The company’s Engine Parts
Division operated three plants in South Carolina and specialized in
engine parts. The division’s Charlotte plant manufactured some
6,500 different parts.
Trouble Brewing
Both the Engine Parts Division, as well as the Charlotte
plant in particular, had shown satisfactory profitability for the
past 20 years. In 2013,...