cost accounting

Blake Romney became Chief Executive Officer of Peters Inc. two years ago. At the interval, the assemblage was tidingsing behindhand receipts, and Blake was brought in to “stir things up.” The assemblage has three dissolutions, electronics, fiber optics, and plumbing victuals. Blake has no profit in plumbing victuals, and one of the pristine things he did was to put hurry on his accountants to reallocate some of the assemblage's agricultural costs afar from the other two dissolutions to the plumbing dissolution. This had the commodities of causing the plumbing dissolution to tidings losses during the ultimate two years; in the late it had constantly tidingsed low, but exquisite, net proceeds. Blake felt that this reallocation would sparkle a fond unsteady on him in face of the consultation of directors consequently it mediumt that the electronics and fiber optics dissolutions would appear love they were graceful. Given that these are “businesses of the advenient,” he believed that the accumulation negotiate would recoil favorably to these increases, conjuncture not penalizing the thin results of the plumbing dissolution. Without this transfer in the allocation of agricultural costs, the receipts of the electronics and fiber optics dissolutions would not possess improved. But now the consultation of directors has suggested that the plumbing dissolution be barred consequently it is tidingsing losses. This would medium that approximately 500 employees, multifarious of whom possess worked for Peters their well lives, would waste their jobs.

a. If a dissolution is tidingsing losses, does that necessarily medium that it should be barred?
b. Was the reallocation of agricultural costs counter dissolutions unethical?
c. What should Blake do?

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