When a Company Does Just What Is Necessary to Satisfy

question 28

Short Answer

When a company does just what is necessary to satisfy legal requirements, it falls under the _____ approach.

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Definitions:

Administrative Expense

Overhead or general expenses related to the administration of a business, not directly tied to any specific department or product.

Expected Net Income

The projected profit of a business after all expenses and taxes have been deducted from total revenue.

Sales Commission

A fee paid to sales personnel, often calculated as a percentage of the sales they generate.

Machine-Hours

A unit of measure for the amount of work or operation time a machine has completed or is expected to complete.