The Course of Action That a Business Opts to Take

question 36

True/False

The course of action that a business opts to take and which does not violate accepted principles or business ethics is known as an ethical strategy.

---

Definitions:

Traceable Fixed Advertising

Costs of advertising that can be directly associated with a specific product or segment of the business.

Fixed General Factory Overhead

Costs associated with operating a factory that do not vary with the level of production, such as factory rent, insurance, and salaries of managers.

Variable Cost

Expenses that change in proportion to the activity of a business, such as cost of goods sold or materials costs.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance premiums.