Which of the Following Is Not an Example of the Fraud

question 17

Multiple Choice

Which of the following is not an example of the fraud triangle characteristic concerned with rationalization?

• A) revenge against the company
• B) intent to repay "borrowed" funds in the future
• C) sense of entitlement as compensation for receiving a lower than average raise
• D) belief that the company won't suffer because an insurance company will reimburse losses

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Definitions:

Variable Cost

Expenses that fluctuate directly and proportionately with changes in production volume or activity level, such as raw materials and direct labor.

Planning Budget

A financial plan that forecasts revenue, expenditures, and resources needed for a particular period.

Static Budget

A financial plan that does not change or adjust over the period for which it is set, regardless of variations in activity levels or performance.

Overhead Cost

These are expenses related to the ongoing operation of a business that isn't directly tied to a specific product or service.