Which of the following is an example of political costs under the PAT perspective?
A) Wage and salary deductions paid to unions
B) Contributions to political parties
C) Costs associated with increased wage claims
D) The cost of remaining largely unnoticed by government regulatory agencies

Question

Quizplus · Accepted Answer

Political costs under the PAT perspective are costs that arise due to pressure from external stakeholders such as government, interest groups, and communities. Increased wage claims can result from pressure by labor unions or other interest groups to increase wages, which can be seen as a political cost.

Answer: B
 Contributions to political parties can be considered a political cost because they are expenses incurred to influence government policies and decisions. Companies may make donations to political parties to gain support or access to policymakers, which can be seen as a way of minimizing political risks.

Answer: D
 The cost of remaining largely unnoticed by government regulatory agencies can also be considered a political cost under the PAT perspective. If a company operates in a way that avoids scrutiny by regulators, it may miss out on opportunities to influence policies in its favor or avoid penalties and legal liabilities.

Which of the Following Is an Example of Political Costs