The Best Way for Sales Managers to Instill Ethical Behavior

question 111

Multiple Choice

The best way for sales managers to instill ethical behavior in the sales force is to

• A) provide extensive ethical training.
• B) use only straight salary and no commissions.
• C) employ a sales ethics forecaster.
• D) never use telemarketing.
• E) lead by example.

Distinguish between financial reporting requirements for different types of organizations (publicly accountable, private enterprises, NFPs, and government organizations).

Recognize how adoption of IFRS varies between code-law and common-law countries, including the adoption process for amendments.

Identify the specific accounting standards applicable to private companies, including factors influencing the choice between IFRS and ASPE.

Understand the variability in global audit quality and its implications for adopting international standards.

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Definitions:

Relevant Range

The relevant range is a level of activity within which assumptions about variable and fixed cost behaviors are valid, used for budgeting and forecasting.

Activity Level

A measure of the volume of work or operations in a company, influencing variable costs and often used for budgeting and performance evaluation.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, insurance, and salaries of permanent staff.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behavior are valid.