When Using the Step-Down Method What Is an Appropriate Method

question 41

Multiple Choice

When using the step-down method what is an appropriate method to rank the cost pools?

• A) From the cost pool with the lowest budgeted costs to the cost pool with the highest budgeted costs
• B) From management's intuitive determination which can be based on a variety of factors
• C) From the cost pool with the fewest employees to the cost pool with the most employees
• D) All of these are acceptable methods as long as they are applied consistently

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Definitions:

Starting Point Of CSR

The conceptual origin or initial step in adopting Corporate Social Responsibility, where a company acknowledges its responsibility towards society and the environment beyond profit-making activities.

Environmentalism

Environmentalism is a broad philosophy and social movement that seeks to conserve and improve the natural environment through changes in public policy and individual behavior.

Codes Of Ethics

Written guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards.

CSR

Corporate Social Responsibility, the practice of companies taking responsibility for their impact on social, environmental, and economic factors.