Which of the Following Is Not One of the Three

question 14

Multiple Choice

Which of the following is not one of the three interrelated elements that enable someone to commit fraud?

• A) Opportunity
• B) Non-sharable financial need
• C) Ability to rationalize
• D) Fraud risk

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Definitions:

Indirect Cost

Expenses not directly attributable to a specific product or activity, often including overhead costs like utilities.

Contribution Format

A type of income statement where costs are divided into variable and fixed categories, emphasizing the contribution margin.

Traditional Format

In accounting, a conventional way of presenting financial statements that may include the income statement in a single-step or multi-step format, depending on the level of detail.

Cost Of Goods Sold

This is the direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.