When Enron's Top Executives Were Subpoenaed to Testify Before Congress

question 47

Multiple Choice

When Enron's top executives were subpoenaed to testify before Congress, all of them exercised their constitutional right against self-incrimination except:

• A) Kenneth Lay, founder and chief executive officer.
• B) Jeffrey Skilling, chief operating officer.
• C) Andrew Fastow, chief financial officer.
• D) Rick Clausey, chief accounting officer.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, contributing to covering fixed expenses and profit.

Variable Expenses

Expenditures that change in direct relation to production levels or sales quantities.

Mixed Cost

A cost composed of a mixture of fixed and variable components. Costs are fixed for a set level of production or consumption, becoming variable with further production or consumption.

Fixed Expenses

Regular expenses that do not vary in total over a wide range of activity levels.