The 2010 Passage of the Dodd-Frank Act Proposed Additional Monetary

question 16

Multiple Choice

The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers.A primary concern about these new incentives is

• A)they will encourage too many employees to attempt to blow the whistle on firms,even those that have done nothing wrong.
• B)people do not generally respond at all to monetary incentives.
• C)whistle-blowers might be tempted to report to the SEC with their reports and not report the misconduct to the company's internal compliance program.
• D)people may exaggerate their claims in order to get a reward.
• E)the funds paid out to whistle-blower might bankrupt companies.

---

Definitions:

Prior Processing Department

A section within a manufacturing facility where raw materials undergo initial stages of processing before moving to subsequent phases of production.

Conversion Costs

The total expenses of manufacturing overhead and direct labor required to transform raw materials into completed products.

Assembly Department

A division within a manufacturing plant where components are assembled into final products.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units for accounting purposes.