The Belief That an Activity Is Safe Because It Will

question 59

Multiple Choice

The belief that an activity is safe because it will never be found out is a common rationalization behind an employee's unethical conduct.What can an organization do to deter unethical behavior based on this rationalization?

• A) Managers should take punitive action in private.
• B) Managers should punish the individual publicly.
• C) Managers should ideally ignore first-time offenders.
• D) Managers should reprimand the individual discretely.

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Definitions:

Volume Variance

The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced.

Factory Overhead Cost

All of the costs of producing a product except for direct materials and direct labor.

Normal Capacity

The average level of operational output or activity that a company can sustain over a long period, considering fluctuations in demand and maintenance schedules.

Cost Variance

The difference between the actual cost and the standard or planned cost in a budget.