Peter Drucker Stated, "Profit for a Company Is Like Oxygen

question 14

Multiple Choice

Peter Drucker stated, "Profit for a company is like oxygen for a person.If you don't have enough of it, you're out of the game.But if you think your life is about breathing, you're really missing something." This statement reflects the ______ argument for corporate social responsibility.

• A)ethical
• B)moral
• C)rational
• D)economic

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Definitions:

Direct Labour Hours

Direct labour hours refer to the amount of time spent by workers directly involved in the manufacturing process of a product or service.

Cost Driver

A factor that causes or relates to a change in the cost of an activity or product.

Activity-Based Budgeting (ABB)

A budgeting approach that determines the cost of activities necessary for producing a product or service, aiming to improve cost efficiency.

Activity-Based Costing (ABC)

A costing methodology that assigns overhead and indirect costs to specific activities, thereby providing more accurate cost information.