I am having some trouble with a new business. I am concerned because the large advertising expense will erode profits for the first year of operations and I know that to obtain financing you will be required to submit an income statement prepared based on absorption costing. A manager approached me about a way to improve profits so it will be easier to obtain financing for future operations. The manager suggested that I have the controller classify the large advertising expense as a product cost, similar to materials and labor. How would classifying advertising expense as a product cost improve profits? Is this approach ethical? Is it legal?