Perpetual Batteries Recently Came Under Criticism When a Newspaper Article

question 49

Multiple Choice

Perpetual Batteries recently came under criticism when a newspaper article revealed that the company's production plant had leaked a chemical compound into a sensitive wetland ecosystem. Although use of the chemical was not technically prohibited by law, the local government levied a small fine for cleaning up the spill. Environmental groups, however, argued that continued use of the chemical was damaging to the local wildlife and threatened to organize a boycott against Perpetual Batteries. What should Perpetual Batteries do to ensure that it meets its ethical responsibilities?

• A) Pay the fine levied by the local government and resume operations.
• B) Move its production facilities to an area that is less concerned with environmental issues.
• C) Take out an advertisement arguing that use of the chemical is perfectly legal.
• D) Design batteries without the chemical and market them as environmentally friendly.

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Definitions:

Activity-Based Costing

A method of allocating overhead and indirect costs to specific products or activities based on their consumption of resources.

Processing Orders

The activities involved in fulfilling customer requests for goods or services.

Time-Driven

A term related to activity-based costing that assigns costs based on the amount of time required to complete a task.

Resolving Queries

The process of addressing and clarifying doubts or questions that arise in any context, ensuring understanding or resolving issues.