Which of the Following Is Required by the Sarbanes-Oxley Act

question 11

Multiple Choice

Which of the following is required by the Sarbanes-Oxley Act?

• A) a price-earnings ratio
• B) a report on internal control
• C) a vertical analysis
• D) a common-sized statement

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Definitions:

Labor Rate Variance

The discrepancy between what labor actually costs and what was initially budgeted or considered as the standard labor cost.

Actual Results

The real outcomes or data obtained from an operation or process, often compared against planned or forecasted results.

Standard Cost System

A method of cost accounting that compares actual costs to predetermined standards, facilitating variance analysis to manage costs.

Standard Amount

The budgeted or pre-determined cost of materials, labor, and overhead that is used as a benchmark for actual costs.