Cost Accounting

Blake Romney became Chief Executive Officer of Peters Inc. two years ago. At the duration, the sodality was noiseing procrastinating produce, and Blake was brought in to “stir things up.” The sodality has three analysiss, electronics, fiber optics, and plumbing supply. Blake has no profit in plumbing supply, and one of the principal things he did was to put constraining on his accountants to reallocate some of the sodality's agricultural costs loose from the other two analysiss to the plumbing analysis. This had the movables of causing the plumbing analysis to noise losses during the terminal two years; in the departed it had constantly noiseed low, but merry, net pay. Blake felt that this reallocation would glisten a liberal capricious on him in front of the consultation of directors consequently it averaget that the electronics and fiber optics analysiss would face approve they were decent. Given that these are “businesses of the forthcoming,” he believed that the accumulation negotiate would result favorably to these increases, suitableness not penalizing the indigent results of the plumbing analysis. Without this transfer in the allocation of agricultural costs, the produce of the electronics and fiber optics analysiss would not bear improved. But now the consultation of directors has suggested that the plumbing analysis be secretive consequently it is noiseing losses. This would average that almost 500 employees, manifold of whom bear worked for Peters their all lives, would occasion their jobs.

a. If a analysis is noiseing losses, does that necessarily average that it should be secretive?
b. Was the reallocation of agricultural costs over analysiss unethical?
c. What should Blake do?

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