Final answer:
The statement is false because ethically aligning production with anticipated future sales is a legitimate business strategy to meet market demand and avoid stockouts.
Step-by-step explanation:
The statement "It is unethical to increase production and ending inventories to accommodate an expected increase in future sales" is false. Ethically managing production and inventories involves aligning business practices with anticipated market demand. Increasing production and inventory levels in anticipation of future sales is a standard business strategy used to ensure that a company can meet customer needs promptly and avoid lost sales due to stockouts. It is only when these practices are used to deceive stakeholders, manipulate financial results, or harm the market that they become unethical.