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The drawback under Sarbanes-Oxley Act is criminal provision, which can be used to punish people who provided information to law enforcing agencies relating to the possible commission of any federal offences.
Fixed Costs
Expenses that do not change in total despite fluctuations in production or sales levels, such as rent, salaries, and insurance premiums.
Break-Even Point
The point at which total costs and total revenue are equal, resulting in no net loss or gain, and where the business is essentially covering all its costs.
Contribution Margin Ratio
A measure of a company's ability to cover variable costs with sales, calculated as (Sales - Variable Costs)/Sales.
Fixed Costs
Expenditures on items like rent, salaries, and insurance that stay fixed, irrespective of production or sales figures.
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