A Code of Ethics Is a Collection of Principles That

question 34

True/False

A code of ethics is a collection of principles that are intended to guide decision making by members of the organization.

Analyze additional business considerations based on variable and fixed costs.

Understand relevant and irrelevant costs for decision making.

Identify the steps involved in managerial decision-making.

Understand the concept of opportunity cost in decision making.

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Definitions:

Consumer's Surplus

The variance between what consumers are prepared and capable of spending for a product or service and the actual sum they end up paying.

Price of X

The cost or monetary value associated with acquiring, producing, or selling a good or service named X.

Quasilinear Preferences

Preferences characterized by a linear relationship in one good and non-linear in others, implying constant marginal utility for the linear good.

Consumer Surplus

The gap between the total price consumers are ready and able to spend for a good or service and what they actually spend.