An Organization Is Meeting Its Discretionary Responsibility When It

question 178

Multiple Choice

An organization is meeting its discretionary responsibility when it

• A) is in compliance with the law and requirements of various external regulations.
• B) voluntarily moves beyond basic economic, legal, and ethical expectations to provide leadership in advancing social well-being.
• C) earns a profit through provision of goods and services desired by customers.
• D) voluntarily conforms to legal expectations as well as broader values and moral expectations of society.
• E) anticipates socially responsible behaviour.

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Definitions:

Stockout Cost

The financial impact associated with running out of stock, including lost sales, backorder processing, and customer dissatisfaction.

Inventory Holding Cost

The expenses associated with storing unsold goods, including warehousing, insurance, and spoilage costs.

Yield Management Principles

Strategies used in revenue management to adjust prices and inventory in response to demand, in order to maximize revenue or yield.

Sales Price

The amount of money charged for a product or service, or the value that customers are willing to pay.