In Order to Ensure That a Company's Ethics Code Will

question 14

True/False

In order to ensure that a company's ethics code will encourage ethical decision making and behaviour,companies need to accomplish two objectives. The first is to communicate the codes to others both within and outside the company,and the second is to develop practical ethical standards and procedures specific to the company's line of business.

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Definitions:

Variable Cost

A cost that changes in proportion with the level of output or activity.

Fixed Cost

Expenses that do not change with the level of output or sales, remaining constant even if the business activity varies.

Activity Variance

The difference between what was expected in terms of expenses or revenues for a particular activity level and what was actually realized.

Vehicle Operating Cost

The total expense associated with keeping a vehicle running, including fuel, maintenance, insurance, and depreciation.