Which of the Following Statements Is True of Facilitating Payments

question 74

Multiple Choice

Which of the following statements is true of facilitating payments?

• A) According to the Foreign Corrupt Practices Act "facilitating payments" are as illegal as bribes.
• B) Facilitating payments are payments to secure contracts that otherwise would not be secured.
• C) Having a zero-tolerance approach toward facilitating payments is ethical.
• D) Companies are allowed to make facilitating payments only in developing countries.
• E) The concept of facilitating payments was introduced by the UN to put U.S. firms at a competitive disadvantage.

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Definitions:

Prime Cost

Prime cost refers to the combined direct costs of raw materials and labor that are directly involved in the production of goods.

Cake Factory

A facility dedicated to the mass production of cakes and related bakery items for distribution and sale.

Conversion Cost

The sum of direct labor and manufacturing overhead costs that are required to transform raw materials into finished goods.

Depreciation

The methodical distribution of the expense of a physical asset throughout its expected lifespan.