A Six-Step Approach Is Often Used to Resolve an Ethical

question 58

Multiple Choice

A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to

• A) identify the alternative actions available.
• B) identify the ethical issues from the facts.
• C) determine who will be affected by the outcome of the dilemma.
• D) obtain the relevant facts.

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Definitions:

Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the investment's cost.

Markup

A markup on the base cost of goods intended to cover the expenses of operation and ensure a profit margin.

Absorption Costing

This financial documentation style accounts for all costs arising from manufacturing activities, encompassing direct materials, direct labor, and all overhead costs, both variable and fixed, in the product cost calculation.