Question: In conducting interviews and observing factory operations to implement an activity costing system, you determine, what several activities arc unnecessary or redundant. For example, warehouse personnel were inviting purchased components as they were received at the loading dock Later that day, the components 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 procurer. If you include this observation in your report, one or more employees who perform inspections will lose their jobs.
Required: 1. As a plant employee, what is your responsibility to report your findings to superiors?
2. Should you attempt to determine if redundancy is justified? Explain.
3. What is you responsibility to the employs whose jobs will likely be lost because of your report?
4. What facts should you consider before making your decision to report or not?