An Organization Develops a Code of Ethics PRIMARILY Because

question 59

Multiple Choice

An organization develops a code of ethics PRIMARILY because:

• A)the code allows for punishment of those who do not follow organizational ethical standards.
• B)it helps reduce ethical conflict by avoiding ambiguity and misunderstanding.
• C)the management accounting department finds it helpful.
• D)it is required by law.

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Definitions:

Time-Driven Activity-Based Costing

A costing method that assigns costs based on the time resources are consumed by activities, improving accuracy in cost allocation.

Order Fulfillment Department

The department within a firm that handles the execution of customer orders and guarantees the provision of products or services.

Customer Cost Analysis

A method of evaluating the costs associated with acquiring and servicing a customer, compared to the revenue generated from the customer, to determine profitability.

Time-Driven Activity-Based Costing

A costing method that assigns costs to products and services based on the time resources are used to produce them, taking into account both variable and fixed costs.