Which of the Following Statements Is True Regarding Ethics in Decision-Making

question 51

Multiple Choice

Which of the following statements is true regarding ethics in decision-making?

• A) Since most business decisions are simply a matter of economics, ethical considerations should be ignored.
• B) Decision-making can have an ethical as well as an economic impact.
• C) Managerial accountants do not face ethical issues.
• D) Business managers will always agree on ethical choices.

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Definitions:

Alternative

An option or choice that serves as a substitute to a decision or course of action.

Intermediate Product

Goods that are produced and used as inputs in the production of other goods, rather than being sold directly to consumers.

Processed Further

A decision in cost accounting regarding whether or not to continue adding value to a product beyond the split-off point.

Differential Revenue

The difference in revenue expected from two different business decisions or scenarios, often considered when evaluating options.