Why Was the Sarbanes-Oxley Act of 2002 Created

question 50

Multiple Choice

Why was the Sarbanes-Oxley Act of 2002 created?

• A) in response to financial scandals
• B) as a result of environmental disasters
• C) in response to widespread Internet fraud
• D) because of a need for more e-discovery regulation

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Definitions:

Predetermined Overhead Rate

A calculated rate used to allocate manufacturing overhead costs to individual units of production, typically based on estimated costs and activity levels.

Direct Labour Cost

The expense incurred for workers who are directly involved in the production of goods or services.

Manufacturing Costs

Costs directly associated with the production of goods, including materials, labor, and factory overhead.

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.