Question

In conducting interviews and observing factory operations to implement an activity-based costing system, you determine that several activities are unnecessary or redundant. For example, warehouse personnel was inspecting purchased components as they were received at the loading dock. Later that day, the components were inspected again on the shop floor before being installed in the final product. Both of these activities caused costs to be incurred but were not adding value to the product. If you include this observation in your report, one or more employees who perform inspections will likely lose their jobs. Required As a plant employee, what is your responsibility to report your findings to superiors? Should you attempt to determine if the redundancy is justified? Explain. What is your responsibility to the employees whose jobs will likely be lost because of your report? What facts should you consider before making your decision to report or not??

          In conducting interviews and observing factory operations to
implement an activity-based costing system, you determine that
several activities are unnecessary or redundant. For example,
warehouse personnel was inspecting purchased components as they
were received at the loading dock. Later that day, the components
were inspected again on the shop floor before being installed in
the final product. Both of these activities caused costs to be
incurred but were not adding value to the product. If you include
this observation in your report, one or more employees who perform
inspections will likely lose their jobs.
Required
As a plant employee, what is your responsibility to report your
findings to superiors?
Should you attempt to determine if the redundancy is justified?
Explain.
What is your responsibility to the employees whose jobs will
likely be lost because of your report?
What facts should you consider before making your decision to
report or not??

Added by Kimberly S.

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