All of the Following Tend to Be Rationalizations for Fraud

question 9

Multiple Choice

All of the following tend to be rationalizations for fraud except:

• A) We need to protect the shareholders and keep the stock price high
• B) All companies use aggressive accounting techniques
• C) The employee will be fired unless s/he goes along with the fraud
• D) We are correcting a temporary problem that will not exist in the future

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Definitions:

Sales Volume Variance

A measure used to assess the impact of the difference between actual sales volume and budgeted sales volume on revenue.

Master Products

Essential or core products that a company offers, which define its primary business operations.

Standard Costing

An accounting method used to estimate the cost of production by assigning standard costs for materials and labor, used for budgeting and controlling expenses.

Cost Comparisons

The process of comparing the costs of different options or strategies to determine the most economically viable choice.