A Company's Values Concern

question 23

Multiple Choice

A company's values concern

• A) whether and to what extent it intends to operate in an ethical and socially responsible manner.
• B) how aggressively it will seek to maximize profits and enforce high ethical standards.
• C) the beliefs and operating principles built into the company's "balanced scorecard" for measuring performance.
• D) the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission.
• E) the beliefs, principles, and ethical standards that are incorporated into the company's strategic intent and business model.

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Definitions:

Unit Product Cost

The calculated cost to produce one unit of a product, including direct materials, labor, and overhead.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes to covering fixed costs and generating profit.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.