What Is Likely the Single MOST Effective Step That a Company

question 16

Multiple Choice

What is likely the single MOST effective step that a company can take to set ethical standards?

• A) Offer large cash awards for whistle-blowing.
• B) Suggest that employees take ethics training.
• C) Post ethical rules on bulletin boards.
• D) State that the workplace values diversity.
• E) Demonstrate support from top management.

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Variable Cost

Costs that change in proportion to the level of activity or volume of production, such as materials and labor.

Fixed Cost

Expenses that do not change in relation to production volume, such as rent, salaries, and insurance premiums.

Theory of Constraints

A methodology that focuses on identifying and managing the most significant limiting factor (constraint) that stands in the way of achieving a goal.