Multinational Companies That Forbid the Payment of Bribes and Kickbacks

question 14

Multiple Choice

Multinational companies that forbid the payment of bribes and kickbacks in their codes of ethical conduct and that are serious about enforcing this prohibition:

• A) are generally advocates of the ethical relativism school of thought.
• B) are misguided in their efforts because bribes and kickbacks are really no different from tipping for service at restaurants.Whether you tip for service at dinner or make payments to government officials to get goods through customs or give kickbacks to customers to retain their business,you pay for a service rendered.
• C) face a particularly vexing problem of losing business to competitors that have no scruples-an outcome that penalizes ethical companies and company personnel.
• D) are out-of-step with business reality given that the preponderance of company managers are immoral.
• E) are in a distinct minority compared to companies that view the payment of bribes and kickbacks as a legitimate or permissible practice.

---

Definitions:

Job F

Based on context, this could refer to a specific job identifier in job costing, tracking costs and revenue associated with a particular job.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a selected activity base.

Direct Labor-hour

The number of labor hours spent on the direct production of goods or services.

Manufacturing Overhead

Costs incurred from the manufacturing process, which exclude both direct labor and materials, are categorized as indirect costs.