The Real Test of Any Company's Ethics Policy Comes When

question 62

Multiple Choice

The real test of any company's ethics policy comes when one of your employees _______.

• A)must train other employees
• B)is hired by your competition
• C)is presented with a potentially unethical situation
• D)is terminated

---

Definitions:

Variable Overhead Rate

The per-unit cost of overhead that changes with the level of production or activity.

Efficiency Variances

The differences between actual costs and the standard or budgeted costs based on the efficient use of resources.

Fixed Manufacturing Overhead Budget

A predetermined estimate of the total fixed costs required to support production activities, excluding variable costs directly tied to production volume.

Volume Variances

Variances that occur when actual volume of production or sales differs from the planned volume, affecting revenue and expenses.