In conducting interviews and observing factory operations to implement an Activity Based Costing system, you discover several activities that are unnecessary or redundant. For example, warehouse personnel were inspecting purchased components as they were received at the loading dock. Later that day, the components were inspected again 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 included this observation in your report, one or more employees who perform inspections will likely loose their jobs.

Here's a couple questions you could consider as you formulate your response:

1. As a plant employee, what is your responsibility to report these findings to your superiors?

2. Should you attempt to determine if the redundancy is justified?

3. What is your responsibility to the employees who may lose their jobs because of your report?

4. What other factors might you consider before making your decision to report or not?

Please respond once or twice to the topic and two or three times to classmates for a total of four posts in order to receive full credit.