At the Heart of the Federal Sentencing Guidelines for Organizations

question 29

Multiple Choice

At the heart of the Federal Sentencing Guidelines for Organizations is a

• A)"tit-for-tat" philosophy that punishes wrongdoing.
• B)Golden Rule philosophy.
• C)Iron Fist philosophy severely punishes wrongdoing.
• D)carrot-and-stick philosophy that rewards efforts to improve ethics.
• E)utilitarian philosophy of the greatest good for the greatest number.

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Definitions:

Avoidable Costs

Costs that you get back if you shut down operations.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials or labor expenses.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales activity, such as rent, salaries, and insurance.

Average Costs

The total cost of production divided by the number of goods produced, reflecting the average expense per unit.