This Ethical Principle Requires the Manager to Calculate Which Course

question 30

Multiple Choice

This ethical principle requires the manager to calculate which course of action,among alternatives,will result in the greatest benefit for the company and all workers.

• A) The might-equals-right ethic
• B) The ends-means ethic
• C) The proportionality ethic
• D) The utilitarian ethic

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Definitions:

Profit-Volume Ratio

A financial tool used to analyze the relationship between profit and sales volume, showing the impact of sales changes on profits.

Unit Contribution Margin

The dollars available from each unit of sales to cover fixed costs and provide operating profits.

Break-Even Point

The level of operations at which a company’s revenues and expenses are equal.

Contribution Margin Ratio

A financial metric that measures a product's profitability by calculating the difference between its sales and variable costs as a percentage of total sales.