Ethical case: In this case out of the three departments Person B has no interest in plumbing department. B wants to reallocate the company’s fixed cost of other two divisions to the plumbing divisions in order to improve the income. But it does not create any changes thereby, the board of directors suggested to close the plumbing department. Discuss if a division is reporting losses, does that mean that it should be closed.

Question

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Answer 1

Question

Chapter 20, Problem 6EYCT

(a)

To determine

Ethical case:

In this case out of the three departments Person B has no interest in plumbing department. B wants to reallocate the company’s fixed cost of other two divisions to the plumbing divisions in order to improve the income. But it does not create any changes thereby, the board of directors suggested to close the plumbing department.

Discuss if a division is reporting losses, does that mean that it should be closed.

(b)

To determine

Explain Reallocation of fixed costs across the division was unethical.

(c)

To determine

Explain what Person B should do?

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Answer 2

Question

Chapter 20, Problem 6EYCT

(a)

To determine

Ethical case:

In this case out of the three departments Person B has no interest in plumbing department. B wants to reallocate the company’s fixed cost of other two divisions to the plumbing divisions in order to improve the income. But it does not create any changes thereby, the board of directors suggested to close the plumbing department.

Discuss if a division is reporting losses, does that mean that it should be closed.

(b)

To determine

Explain Reallocation of fixed costs across the division was unethical.

(c)

To determine

Explain what Person B should do?

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Answer 3

Question

Chapter 20, Problem 6EYCT

(a)

To determine

Ethical case:

In this case out of the three departments Person B has no interest in plumbing department. B wants to reallocate the company’s fixed cost of other two divisions to the plumbing divisions in order to improve the income. But it does not create any changes thereby, the board of directors suggested to close the plumbing department.

Discuss if a division is reporting losses, does that mean that it should be closed.

(b)

To determine

Explain Reallocation of fixed costs across the division was unethical.

(c)

To determine

Explain what Person B should do?

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Answer 4

Question

Chapter 20, Problem 6EYCT

(a)

To determine

Ethical case:

In this case out of the three departments Person B has no interest in plumbing department. B wants to reallocate the company’s fixed cost of other two divisions to the plumbing divisions in order to improve the income. But it does not create any changes thereby, the board of directors suggested to close the plumbing department.

Discuss if a division is reporting losses, does that mean that it should be closed.

(b)

To determine

Explain Reallocation of fixed costs across the division was unethical.

(c)

To determine

Explain what Person B should do?

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Answer 5

Chapter 20, Problem 6EYCT

(a)

To determine

Ethical case:

In this case out of the three departments Person B has no interest in plumbing department. B wants to reallocate the company’s fixed cost of other two divisions to the plumbing divisions in order to improve the income. But it does not create any changes thereby, the board of directors suggested to close the plumbing department.

Discuss if a division is reporting losses, does that mean that it should be closed.

(b)

To determine

Explain Reallocation of fixed costs across the division was unethical.

(c)

To determine

Explain what Person B should do?

Answer 6

Chapter 20, Problem 6EYCT

(a)

To determine

Ethical case:

In this case out of the three departments Person B has no interest in plumbing department. B wants to reallocate the company’s fixed cost of other two divisions to the plumbing divisions in order to improve the income. But it does not create any changes thereby, the board of directors suggested to close the plumbing department.

Discuss if a division is reporting losses, does that mean that it should be closed.

Answer 7

Chapter 20, Problem 6EYCT

(a)

To determine

Ethical case:

In this case out of the three departments Person B has no interest in plumbing department. B wants to reallocate the company’s fixed cost of other two divisions to the plumbing divisions in order to improve the income. But it does not create any changes thereby, the board of directors suggested to close the plumbing department.

Discuss if a division is reporting losses, does that mean that it should be closed.

Answer 8

(b)

To determine

Explain Reallocation of fixed costs across the division was unethical.

Answer 9

(b)

To determine

Explain Reallocation of fixed costs across the division was unethical.

Answer 10

(c)

To determine

Explain what Person B should do?

Answer 11

(c)

To determine

Explain what Person B should do?

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 20 - Prob. 1Q Ch. 20 - Prob. 2Q Ch. 20 - Prob. 3Q Ch. 20 - Prob. 4Q Ch. 20 - Prob. 5Q Ch. 20 - Prob. 6Q Ch. 20 - Prob. 7Q Ch. 20 - Prob. 8Q Ch. 20 - Prob. 9Q Ch. 20 - Prob. 10Q

Explain Reallocation of fixed costs across the division was unethical.

Explain what Person B should do?

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Chapter 20 Solutions