Which of Following Practices of a Firm Satisfies Its Ethical

question 81

Multiple Choice

Which of following practices of a firm satisfies its ethical responsibilities?

• A) using plastic as the packaging material though it is harmful to the environment, yet legal
• B) outsourcing production to a less developed country and paying wages that are below its own country's accepted minimum wages
• C) using advertising and other forms of promotion to endorse luxurious lifestyles
• D) selling vaccines at a subsidized price in a less developed country even though this results in reduced shareholder returns

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Definitions:

Estimated Machine Hours

Estimated machine hours are an approximation of the operating hours of machinery within a specific time period, used in costing and budgeting processes to allocate overhead expenses based on machine usage.

Factory Overhead Account

An accounting category that accumulates all the indirect costs associated with manufacturing, excluding direct materials and direct labor.

Credit Balance

A credit balance is the amount of money a financial account shows on the credit side, indicating funds received or owed to the account holder.

Jobs Completed

Refers to work or projects that have been finished within a specified accounting period.