The Sarbanes-Oxley Act of 2002 Was Passed in Response to What

question 94

Multiple Choice

The Sarbanes-Oxley Act of 2002 was passed in response to what event?

• A)a series of accounting scandals
• B)unexpected increases in dividend payments to stockholders at various corporations
• C)volatility in NASDAQ indexes
• D)historically low bond prices

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Definitions:

Overapplied

A situation where the allocated amount of indirect costs exceeds the actual amount incurred.

Underapplied

A situation where the applied manufacturing overhead is less than the actual manufacturing overhead incurred, indicating that the costs have not been fully allocated.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate overhead costs to products or job orders based on a chosen activity base.

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods or provision of services.