An Organization Wants to Develop and Implement a Code of Ethics

question 19

Multiple Choice

An organization wants to develop and implement a code of ethics in order to encourage ethical behavior among employees.Which of the following is a desirable characteristic for an organization's code of ethics?

• A) The code of ethics should encourage whistle-blowing in cases of ethical lapses.
• B) The code of ethics should only be developed if employees are morally attentive.
• C) The code of ethics should be backed by support from top management.
• D) The code of ethics should cover general,rather than specific,ethical cases.
• E) Enforcement of the code of ethics should not be based on punishment and reward.

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Definitions:

Unadjusted Cost of Goods Sold

The total cost attributed to products that have been sold over a period, without any adjustments for inventory changes or other factors.

Journal Entry

A record in accounting that represents every individual transaction made by a company, documented in the chronological order.

Operations

The fundamental activities undertaken by a business to provide its products or services.

Unadjusted Cost of Goods Sold

The initial calculation of the cost of goods sold that does not take into account any adjustments for returns or damaged goods.