Two Former Sales Representatives of Amgen,a Biotech Company,alleged the Company

question 14

Multiple Choice

Two former sales representatives of Amgen,a biotech company,alleged the company strongly encouraged its sales force to search confidential medical records in physician's offices in an attempt to find names of patients that would benefit from the use of Amgen's drug Enbrel,a treatment for psoriasis.After reporting this practice,these two people sued Amgen,claiming they did not go along with the scheme because they objected to it as being unethical.Soon after,one of the reps was fired and the other resigned after receiving a poor performance review.These two people are

• A)scabs.
• B)cronies.
• C)whistle-blowers.
• D)contrarians.
• E)ombudsmen.

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Definitions:

Machine-hours

A measure of production output based on the number of hours machines are operated within a given period.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard variable overhead assigned to the production based on the actual activity levels.

Total Variable Overhead Spending Variance

The overall difference between actual and budgeted variable overhead costs based on the changes in the level of activity.

Variable Overhead

Costs that fluctuate with the level of production output, including indirect expenses like power and materials needed for maintenance and operations.