In Developing Ethical Standards for Your Company, You Attempt to Anticipate

question 36

Multiple Choice

In developing ethical standards for your company, you attempt to anticipate actions that would or could be harmful to consumers or the organization. For your company, ethics is:

• A) Consistent with legal standards
• B) More proactive than the law
• C) Responding to negative consequences of past actions
• D) A formal statement of legal requirements
• E) All of the above

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Definitions:

Selling and Administrative Expense

The aggregated total of all expenses associated with selling a company's products and services, as well as managing the day-to-day operations.

Variable Expense

Costs that vary in direct proportion to changes in levels of activity or production volume.

Fixed Expense

Fixed expense refers to costs that do not fluctuate with changes in production level or sales volume.

Master Budget

A comprehensive financial planning document that includes all of a company’s budgets, projecting its financial activities over a specific period.