Which of the Following Is Not a True Statement Regarding

question 16

Multiple Choice

Which of the following is not a true statement regarding the fraud risk assessment process?

• A) It is more of a science than an art
• B) To be most effective, it should be an ongoing, continuous process
• C) It should be influenced by the culture of an organization
• D) It is aimed at proactively identifying an organization's vulnerabilities to fraud

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Definitions:

Step-Wise Cost

Costs that remain constant for a certain level of activity but jump to a higher amount once a threshold is crossed.

Fixed Cost

Overheads that stay stable no matter the production or sales figures, involving costs like property rent, employee salaries, and insurance policies.

Relevant Range

The span of activity level or volume in which the specific assumptions of cost behavior are considered to be applicable.

Break-Even Point in Units

The point at which sales volumes result in no profit or loss, calculated by dividing fixed costs by the contribution margin per unit.