ETHICS CHALLENGE C$1{?}^3$

BTN $17-1$ In conducting interviews and observing factory operations to implement an activity$-$based costing system, you determine that

several activities are unnecessary. For example, warehouse personnel were 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?

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?