Studies Indicated That the Enactment of the Sarbanes-Oxley Act Has

question 447

Multiple Choice

Studies indicated that the enactment of the Sarbanes-Oxley Act has:

• A) led to more investment in U.S. stock exchanges
• B) led to lower costs for small businesses
• C) led to corporate business shifting away from the U.S. to competitors such as London
• D) led to corporate business shifting away from places like London and to the U.S.
• E) an increase in purchases of government bonds

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Definitions:

Contribution Margin Ratio

The ratio of Contribution Margin to Sales Revenue, indicating the percentage of each sales dollar remaining after variable costs are deducted.

Contribution Format

An income statement format that separates fixed costs from variable costs to highlight the contribution margin.

Target Profit

The expected profit levels set by management for a specific period, guiding pricing and sales strategies.

Income Statement

An account documenting an organization's economic activity, showing income, outlays, and net gains or deficits over a distinct timeframe.