When Management Adheres to a Set of Standards Involving the Right

question 58

Multiple Choice

When management adheres to a set of standards involving the right and wrong actions arising in the work environment,the management is _____.

• A)enacting upon its social responsibility
• B)following its business ethics
• C)working towards social welfare
• D)using creativity to encourage team spirit

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Definitions:

Target Profit

The expected profit levels set by management for a specific period, guiding pricing and sales strategies.

Income Statement

An account documenting an organization's economic activity, showing income, outlays, and net gains or deficits over a distinct timeframe.

Net Operating Income

This refers to a company's income after all operating expenses, but before interest and taxes, are subtracted from total revenue.

Contribution Format

An income statement format that separates fixed costs from variable costs, making it easier to see the contribution margin.