Regarding the Quality of Design, Production, and Distribution of Products

question 68

Multiple Choice

Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to

• A) determine whether any of the organization's stakeholders are violated by poor quality products
• B) gain ISO 14000 certification for the organization
• C) obtain a product safety certificate from the Consumer Product Safety Commission
• D) have the organization's legal staff write disclaimers in the product instruction booklets
• E) compare the cost of product liability to the external failure cost

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Definitions:

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead exceeds the actual manufacturing overhead incurred.

T-account

A graphical representation of a ledger account, illustrating the debit and credit sides for easier accounting analysis.

Raw Materials

Raw materials are the fundamental ingredients or components that are processed to manufacture goods.

Asset

An item or resource owned by an individual or a business, having economic value and expected to provide future benefits.