Stakeholder Responsibility Refers to

question 144

Multiple Choice

Stakeholder responsibility refers to

• A) the view that an organization has an obligation to those who can affect the achievement of its objectives.
• B) the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.
• C) the duty of a firm to maximize profits for its owners or stockholders.
• D) the concept that no expansion or additional research and development will occur until a company is making a profit.
• E) the idea that organizations are part of a larger society and are accountable to that society for their actions.

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Definitions:

Variable Costing

An accounting method in which costs that vary directly with the level of production output are charged to product units.

Net Operating Income

The total profit of a company after operating expenses but before subtracting interest and taxes.

Direct Labor Cost

The cost associated with the work of employees who are directly involved in the manufacturing of products.

Absorption Costing

A method of inventory costing in which all costs of manufacturing are included in the cost of goods sold, including direct materials, direct labor, and both variable and fixed manufacturing overhead.