Making a Business Decision Based on Its Projected Financial Outcome

question 59

Multiple Choice

Making a business decision based on its projected financial outcome and then arguing that the decision is ethical is

• A)rationalizing the decision.
• B)questioning the decision.
• C)using the utilitarian approach.
• D)using the stakeholder approach.

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Definitions:

Normal Spoilage

The expected amount of waste or loss that occurs under efficient operating conditions during the production process.

Production Cost

The total expense incurred in the manufacturing of goods, including materials, labor, and overhead costs.

Standard Cost

A predetermined cost for a product or service, used as a benchmark to measure performance and efficiency.

Budgeted Cost

An estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals.