Ethics Can Be Defined as

question 21

Multiple Choice

Ethics can be defined as

• A) the obligation of organizational decision makers to make decisions and act in ways that recognize the interrelatedness of business and society.
• B) the intentional and ongoing actions of an organization to continuously transform itself by acquiring information and knowledge.
• C) the rules and principles that define right and wrong decisions and behavior.
• D) making decisions and implementing strategies that allow an organization to develop and maintain a competitive advantage.
• E) the international linkage of economies and culture that fosters a business and competitive situation in which organizations have no national boundaries.

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Definitions:

Variable Cost

Expenses that vary directly with the level of production or sales volume, such as materials, labor, and utility costs.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to fixed expenses and profit.

Selling Price

The amount for which a product is sold, determined by considering costs, market demand, competition, and other factors.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behaviors are valid for management decisions.