Given All of the Following Fraud Prevention Methods Within Organizations

question 27

Multiple Choice

Given all of the following fraud prevention methods within organizations, which of the following is probably the most effective?

• A) Having an open-door policy
• B) Screening employees
• C) Increasing the perception of detection
• D) Reducing rationalization

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Definitions:

Fixed Cost

Costs that do not vary with the level of output or activity.

Output

The aggregate production of either goods or services by an organization, commercial sector, or the economy as a whole.

Diminishing Returns Effect

A principle in economics where increasing one factor of production, while keeping others constant, will at some point yield lower per-unit returns.

Variable Cost

Expenses that vary directly with the level of production output, such as raw materials, labor, and energy costs.