The Practical Rule States That an Ethical Decision Is One

question 82

Multiple Choice

The practical rule states that an ethical decision is one that

• A)best protects the rights of people affected.
• B)produces the greatest good for the greatest number of people.
• C)distributes benefits and harms in a fair way.
• D)can be communicated with no reluctance.
• E)is relevant to the financial effectiveness of the organization.

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Definitions:

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses but before taxes and interest.

Variable Selling

Refers to the costs associated with selling a product or service that fluctuate with the level of sales activity, such as commissions and shipping charges.

Absorption Costing

A cost accounting methodology that absorbs all production costs, like direct materials, direct labor, and overhead expenses whether variable or fixed, into the final cost of a product.

Variable Costing

A costing method that includes only the variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.