The Practical Rule States That an Ethical Decision Is One

question 16

Multiple Choice

The practical rule states that an ethical decision is one that:

• A)Best protects the rights of people affected
• B)Produces the greatest good for the greatest number of people
• C)Distributes benefits and harms in a fair way
• D)Can be communicated with no reluctance
• E)Is relevant to financial effectiveness of the organization

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Definitions:

Manufacturing Margin

The difference between the sales revenue generated by manufactured goods and the cost of producing those goods, indicating profitability.

Variable Costing

A pricing technique that incorporates solely the variable costs of production—such as raw materials, direct labor, and variable overhead expenses—into the per-unit cost of products.

Variable Overhead

Costs that change with the level of production or service activities.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.