Laws

question 3

Multiple Choice

Laws:

• A) always support professional values and behaviors.
• B) dictate maximum standards of behavior for professionals in a position of trust who provide services to the public.
• C) are similar to ethics in that they represent ideal standards.
• D) often conflict with an ethical standard related to a similar issue.
• E) are agreed upon rules that are set forth by principles allowing people to live together in a society.

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Definitions:

December

The twelfth and final month of the year in the Gregorian calendar, often associated with end-of-year activities and holidays.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested in the business or used to pay off debt.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, highlighting the impact of fixed costs.