Codes of Conduct Based on Ethical Relativism Can Be Ethically

question 61

Multiple Choice

Codes of conduct based on ethical relativism can be ethically dangerous for multinational companies because:

• A) it creates a maze of conflicting ethical standards.
• B) it justifies conflicting ethical standards for operating in different countries.
• C) it establishes little moral basis for establishing ethical standards for the company worldwide.
• D) it restricts enforcement of ethical standards worldwide.
• E) All of these.

---

Definitions:

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cost Of Goods Sold

An expense measured as the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Work In Process Inventory

Items that are currently under production but have not yet reached completion.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate indirect costs to products or services based on a chosen activity base such as labor hours or machine hours.