With Which of the Following Statements Would Most People in Business

question 26

Multiple Choice

With which of the following statements would most people in business agree?

• A) A corporation's short-run profits will almost always increase if the firm takes actions that the government has determined are in the best interests of the nation.
• B) Firms and government agencies almost always agree with one another regarding the restrictions that should be placed on hiring and firing employees.
• C) "Whistle blowers," because of the courage it takes to blow the whistle,are generally promoted more rapidly than other employees.
• D) It is not useful for large corporations to develop a formal set of rules defining ethical and unethical behavior.
• E) Although people's moral characters are probably developed before they are admitted to a business school,it is still useful for business schools to cover ethics,if only to give students an idea about the adverse consequences of unethical behavior to themselves,their firms,and the nation.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on estimated costs.

Variable Overhead

Costs that vary with the level of production output, such as utilities or indirect materials, but are not directly traceable to a specific unit of product.

Efficiency Variance

The difference between the actual input used to produce a good or service and the standard input expected, used to measure performance.

Fixed Manufacturing Overhead

Costs in the manufacturing process that do not change with the level of production, such as rent, salaries, and depreciation.