Does Ethical Behavior Maximize Profitability

question 26

Multiple Choice

Does ethical behavior maximize profitability?

• A)Yes,there is concrete evidence that ethical behavior will always maximize profitability.
• B)No,there is concrete evidence that unethical companies will always outperform ethical companies.
• C)Although there is no guarantee that ethical behavior pays in the short or long run,there is evidence that the ethical company is more likely to win financially.
• D)There is strong evidence that ethical behavior pays financially in the long run,but not in the short run.

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Definitions:

Static Budget

A budget prepared for a single level of activity, without changes for variations in sales or production volumes, often used for fixed expenses.

Revenue Variance

The difference between actual revenue and budgeted or forecasted revenue, indicating the effectiveness of business strategies.

Variable Cost Variances

Differences between the actual and expected or budgeted variable costs in the production process.

Denominator Activity

The activity level used to divide the total overhead in calculating the predetermined overhead rate, commonly representing capacity or expected usage.