Sarbanes-Oxley Was Intended to Reduce

question 56

Multiple Choice

Sarbanes-Oxley was intended to reduce

• A) asymmetric information.
• B) allocational efficiency.
• C) transactions costs.
• D) all of the above.

---

Definitions:

Decoupling Function

describes the practice of separating different parts of a production process so that a delay or failure in one area does not directly impact another, enhancing flexibility and reliability.

Quantity Discount Problem

A pricing strategy issue where the cost per item lowers as the quantity purchased increases, necessitating analysis for optimal purchasing decisions.

Setup Cost

The expenses incurred to prepare equipment, machinery, or a production line for the manufacture of a new batch of goods.

Holding Cost

The expenses associated with storing unsold goods or materials, including warehousing, insurance, and opportunity costs.