The Rainforest Action Network Launched a Bruising PR Campaign Against

question 4

Multiple Choice

The Rainforest Action Network launched a bruising PR campaign against The Home Depot to stop it from selling old-growth lumber.After two years of bad publicity and resistance to new store locations,The Home Depot surrendered.Today,its suppliers work with environmental and forestry groups to certify that their wood products are not from endangered areas.What type of strategy did The Home Depot use to respond to demands that it be socially responsible?

• A) proactive
• B) accommodative
• C) predictive
• D) defensive

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, based on a predetermined formula.

Machine-Hours

A measure of the time a machine is run during production, used to allocate manufacturing overhead costs based on machine usage.

Markup

A pricing strategy where a fixed amount or percentage is added to the cost of a product to determine its selling price.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to produced goods, based on estimated costs and activity levels.