This Theory of Normative Business Ethics Seeks to Create Value

question 10

Multiple Choice

This theory of normative business ethics seeks to create value for people in a manner that is just and nondiscriminatory.

• A) Stakeholder theory
• B) Investor theory
• C) Social contract theory
• D) Shareholder theory
• E) Stockholder theory

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Definitions:

Production Cost

The total expense incurred in manufacturing goods, including materials, labor, and overhead costs.

Variable Overhead

The costs that fluctuate with the level of production or business activity, such as utilities or materials.

Variable Costing

A pricing approach that incorporates only those production expenses that vary—such as direct materials, direct labor, and variable manufacturing overhead—into the cost of products.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product.