Which of the Following Is the Most Basic Assumption We

question 48

Multiple Choice

Which of the following is the most basic assumption we make in discussing managerial ethics?

• A) With effort, the "right" answer can be reached.
• B) The object of ethical principles is to minimize harm done to others.
• C) The object of ethical principles is to maximize benefits to others and ourselves.
• D) People want to behave ethically.

---

Definitions:

Calculated Selling Price

The calculated selling price is the price at which a product must be sold to cover its costs and achieve a desired profit margin.

Markup

The amount added to the cost price of goods to cover overhead and profit.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated in advance based on estimated costs and activity levels.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products based on a pre-established criterion, such as labor hours or machine hours.