Which of the Following Represents an Attempt to Manage Social

question 78

Multiple Choice

Which of the following represents an attempt to manage social responsibility by means of what the text calls ethical compliance?

• A) Requiring top financial managers to ensure compliance with securities and banking regulations
• B) Creating a committee to write a code of ethics or review proposals concerning selection and promotion
• C) Donating money to fund public broadcasting or the performing arts
• D) Consulting the legal department regarding the requirements of a particular statute
• E) Making human resource managers responsible for complying with EEOC standards

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Definitions:

Variable Expense

A cost that varies with the level of output or sales, such as raw materials or sales commissions.

Fixed Selling and Administrative Expense

Costs that do not change with the level of production or sales, such as salaries of executive personnel and advertising expenses.

Selling and Administrative Expense Budget

A financial plan outlining the projected expenses for selling activities and general administrative functions of a business.

Variable Expense

Costs that vary directly with the level of output or sales, including materials and labor costs.