Kelly Had Spent Longer at Lunch with His Customer,a Computer

question 70

Multiple Choice

Kelly had spent longer at lunch with his customer,a computer game manufacturer,than he expected.But,the meeting had been worthwhile.The customer had told Kelly that his company was about to lower the price of computer game systems the following week,the start of the next financial quarter,but that they were planning to keep this information from the retailers until the last possible minute to maximize the profit margins for the quarter.Kelly decided to delay purchasing a game system,which he had been planning to buy for his daughter,until the following week.What is the nature of Kelly's conflict of interest?

• A) Self-dealing
• B) Personal conduct
• C) Using confidential information
• D) Influence peddling
• E) Kelly is not in a conflict of interest.

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as the cost of raw materials or production volume.

Total Revenue

The amount of money generated from sales of goods or services before any expenses are subtracted.

Variable Costs

Costs that change in proportion to the level of production or sales activities of a business.

Fixed Costs

Business expenses that remain constant regardless of the level of goods or services produced.