Which of the Following Is Not a Part of the Sarbanes-Oxley

question 46

Multiple Choice

Which of the following is not a part of the Sarbanes-Oxley Act of 2002?

• A)the establishment of a Public Company Accounting Oversight Board (PCAOB)to supervise accounting firms and thus insure that audits are independent and controlled for quality
• B)increased penalties for white-collar crime and obstruction of official investigations
• C)requires a CEO and CFO to certify that periodic financial statements and disclosure of the firm are accurate
• D)requires investment banks to make public their analysts' recommendations

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Definitions:

Direct Materials

The raw materials that are directly used in the manufacturing of a product, which can be directly traced to the product itself.

Direct Labour

The wages and related benefits for workers who are directly involved in the manufacturing or production of goods.

Variable Manufacturing Overhead

Variable manufacturing overhead includes costs that fluctuate with production volume, such as utilities and materials used in the production process that are not directly tied to specific units produced.

Fixed Manufacturing Overhead

The consistent, non-variable costs associated with manufacturing, regardless of the production volume.