One Objective of Preventive Law Is to Arrange Business Plans

question 23

Multiple Choice

One objective of preventive law is to arrange business plans and methods to increase profits by _____.

• A) honoring legal obligations while avoiding ethical obligations
• B) reaching business goals through enforceable contracts while avoiding government prohibitions
• C) strictly adhering to the socioeconomic view of the social responsibility of business
• D) prioritizing the interests of corporate stockholders over the interests of other stakeholders

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Definitions:

Departmental Predetermined Rates

Specific predetermined overhead rates set for different departments within a company, allowing more accurate product costing.

Machine-Hours

A unit of measurement for tracking the operational time of machines, crucial in determining efficiency and production costs in manufacturing settings.

Overhead Rate

A calculation used in cost accounting to allocate indirect costs to products or services, typically expressed as a percentage or rate per unit of activity.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated in advance based on estimated costs and activity levels.