The Four Theories of Social Responsibility of Business Discussed in the Text

question 98

Multiple Choice

The four theories of social responsibility of business discussed in the text can best be described as:

• A) laws, only one of which applies in each state.
• B) laws, more than one of which can apply in a particular state.
• C) mutually-exclusive policies on which laws should be based.
• D) policies on which laws should be based, more than one of which might be proper.
• E) policies, only one of which is proper.

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Definitions:

Overhead Applied

The assigning of overhead costs to goods produced based on a predetermined rate or basis such as machine hours or labor hours.

Activity-Based Costing

An accounting technique that tags and apportions the costs of organizational activities to every product and service in line with their real consumption.

Activity Rate

The predetermined rate used to allocate overhead costs to products or services based on a specific activity measure, such as machine-hours or labor-hours.

Labor-Related Activity

Activities or tasks that directly involve or are associated with the workforce's efforts in the production process or service delivery.