When Rationalizers Proceed with a Questionable Action Because of a Mistaken

question 46

Multiple Choice

When rationalizers proceed with a questionable action because of a mistaken belief that "the organization will stand behind me," they believe that:

• A) a questionable behavior is acceptable, especially in ambiguous situations.
• B) because someone can be found to benefit from the behavior, it is also in the organization's best interests.
• C) a questionable behavior is really "safe" and will never be found out or made public.
• D) the organization values loyalty over ethical decision-making.
• E) as long as people have acted in good faith their behavior is ethical.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected cost based on standard prices.

Raw Materials

Basic substances or components that are used in the initial stages of the manufacturing process to produce goods.

Raw Materials Inventory

The stock of unprocessed materials that are used in the manufacturing process to produce finished goods.

Cost of Goods Sold

The total direct costs attributable to the production of the goods sold by a company.