Which of the Following Statements Best Describes the Activities of a Whistle-Blower

question 192

Multiple Choice

Which of the following statements best describes the activities of a whistle-blower?

• A) Mattel issued a statement apologizing for the 150 of the 10 million Power Wheels cars and trucks the company sold that had caught on fire.
• B) Mattel research engineers proved that the spate of fires in the company's Power Wheels cars and trucks was the result of consumers' tinkering with the engine.
• C) A former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire and slightly burned its rider.
• D) The Consumer Product Safety Commission investigated the fires and ordered a recall to repair all of the 10 million units that had been sold.
• E) A Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use.

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Definitions:

FIFO Valuation

A method of inventory valuation where the first items placed in inventory are the first ones sold, standing for First In, First Out.

Recreational Vehicles

Motor vehicles or trailers equipped with living quarters used for recreational purposes like camping or traveling, commonly referred to as RVs.

Lower of Cost or Market

An accounting principle that requires inventory to be recorded at the lower value between its original cost and its current market price.

Gross Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, measuring a company's efficiency in managing its production costs.