According to the Fraud Triangle,which the Following Is One of the Requisites

question 1

Multiple Choice

According to the Fraud Triangle,which the following is one of the requisites for fraud to occur?

• A) The perception of an opportunity for ill-gotten financial gain
• B) The existence of sound justification for a person to receive greater financial rewards
• C) The existence of a clear-cut opportunity for ill-gotten financial gain
• D) Employment in a sensitive financial capacity in which peers reap greater financial rewards than the employee contemplating fraud receives

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Definitions:

Variable Costing

A system in accounting that considers solely the changing costs associated with production (direct materials, direct labor, and variable manufacturing overhead) in the calculation of product prices.

Net Operating Income

Net Operating Income, often abbreviated as NOI, is a financial metric that calculates a company’s profit after subtracting operating expenses excluding taxes and interest.

Absorption Costing

Absorption costing is an accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Absorption Costing

An accounting method that includes all manufacturing costs (both variable and fixed) in the cost of a product.