Which of the Following Is True Regarding Legally Astute Management

question 3

Multiple Choice

Which of the following is true regarding legally astute management teams practicing strategic compliance management?

• A) The cost of complying with government regulation is viewed as an investment, not an expense.
• B) The cost of complying with government regulation is viewed as an expense which should be avoided until legal action is threatened.
• C) Only the minimum necessary to comply with any applicable law should be done.
• D) Both that the cost of complying with government regulation is viewed as an expense which should be avoided until legal action is threatened and that only the minimum necessary to comply with any applicable law should be done.

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Definitions:

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the costs required to convert raw materials into finished goods.

Cost Of Goods Sold

The cost of goods sold (COGS) refers to the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Job Costing

A cost accounting system used to assign costs to specific jobs or batches, typically used in industries with unique, customizable orders.