A Manager Faced with an Ethical Dilemma Asks Herself How

question 75

Multiple Choice

A manager faced with an ethical dilemma asks herself how it would feel to explain the decision to a wider audience by using this ethical principle.

• A) The ends-means ethic
• B) The principle of proportionality
• C) The Doctrine of the Mean
• D) The disclosure rule

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Definitions:

LIFO Reserve

The difference between the cost of inventory calculated using the Last-In, First-Out method and the FIFO (First-In, First-Out) method.

Stock-Outs

Occurrences when items are not in stock and cannot fulfill customer demand, often leading to potential sales loss.

Inventory Unit Costs

The cost associated with each individual unit of inventory, including purchase price, shipping, handling, and storage costs.

FIFO Cost Method

The FIFO (First In, First Out) cost method is an inventory valuation approach where goods first bought are the first ones sold, assuming that older inventory is used up first.