An Employee States That He Committed Fraud Because He Was

question 154

Multiple Choice

An employee states that he committed fraud because he was "underpaid and overworked." This is an example of:

• A) opportunity.
• B) motive.
• C) rationalization.
• D) understanding.

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance premiums, remaining constant regardless of variations in business activity.

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials or labor directly tied to production volume.

Break-even Sales

The point at which total sales equal total expenses, resulting in no profit or loss.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.