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Overcharging Customers

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2) You are the owner and chief cost accountant of a bicycle manufacturing operation You've discovered and verified that you had incorrectly overcharged a customer in the manufacturing of their 100 bikes over the last 6 months and you are about to meet with her within the next 10 minutes. What should you do?

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Solution Summary

The solution discusses the pricing decisions for a bicycle manufacturing operation from a cost accounting perspective.

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I would discuss this situation with them honestly. I would admit that we had made an error and overcharged the customer for 100 bikes over the last 6 months. I would ...

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