When the Proper Tone of Corporate Governance Is in Place

question 76

Multiple Choice

When the proper tone of corporate governance is in place:

• A)Encouraging ethical conduct is unnecessary.
• B)Effectiveness is not improved.
• C)Risk of fraud tends to increase.
• D)Proper stewardship of assets increases.

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Definitions:

Standard Costs

Pre-determined or benchmark costs for products, operations, or activities, used for budgeting purposes and performance evaluation against actual costs.

Direct Labor Time Variance

The difference between the actual time taken to perform work and the estimated standard time, adjusted for units produced.

Standard Costs

Predetermined costs to manufacture a product or deliver a service, used for budgeting and performance evaluation.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (or standard) cost.