Which of the Following Is a Part of the Global

question 25

Multiple Choice

Which of the following is a part of the Global Legal Settlement 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 Price Variance

The difference between the actual cost of direct materials used in production and the standard cost, multiplied by the actual quantity of materials used.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used in variance analysis to control labor costs.

Direct Materials Cost Variance

The difference between the budgeted cost of materials for products and the actual cost incurred.

Direct Labor Rate Variance

The difference between the actual cost of labor per hour and the standard or expected cost, multiplied by the total labor hours worked.