What Is Probably the Most Effective Way for a Company

question 47

Multiple Choice

What is probably the most effective way for a company to encourage ethical behavior?

• A) hire employees who are ethical and in agreement with the company's views
• B) have ethics training sessions for interested employees
• C) threaten employees with immediate termination for unethical behavior
• D) post signs discouraging sexual harassment and discrimination
• E) develop and enforce a written code of ethics for the organization

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Definitions:

Absorption Costing

A financial method that integrates all production-related costs — direct materials, direct labor, and both variable and fixed overheads — into the cost calculation of a product.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to operating the manufacturing facilities.

Period Expenses

Operating expenses that are incurred by a business within a specific time period, not directly tied to the production process.

Absorption Costing

A financial recording technique that incorporates all production-related charges, including direct materials, direct labor, along with both changeable and steady overhead expenses, into the product's cost.