Which of the Following Statements Is True About the Sustainability

question 17

Multiple Choice

Which of the following statements is true about the sustainability theory of social responsibility?

• A)It states that corporations should only focus on increasing shareholder wealth.
• B)It exclusively focuses on the corporations' duty to protect the environment.
• C)It states that focusing on the world's social and responsible problems will help corporations outperform their peers.
• D)It states that corporations should think about social responsibility only after they establish themselves and achieve profitability.

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Definitions:

Sequential Method

A cost allocation technique that processes cost pools in a pre-determined order, allocating costs to one cost object before moving on to the next.

Support Department Allocations

The process of attributing a portion of support (or indirect) department costs to the producing departments within an organization, based on agreed-upon criteria.

Cost Driver

A factor that causes a change in the cost of an activity; it directly impacts the cost of manufacturing goods or delivering services.

Reciprocal Services Method

An approach to allocating costs between departments that provide mutual services to each other, ensuring a fair distribution based on services rendered.