If an Entity Increases Its Level of Activity

question 24

Multiple Choice

If an entity increases its level of activity:

• A) some costs will vary, others will remain the same.
• B) all costs will vary.
• C) all costs will remain the same.
• D) most costs will rise.

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Definitions:

Collusion

Collusion refers to a secret or illegal cooperation or conspiracy, especially among firms, to deceive or gain an unfair advantage.

Fraud Committee

A group formed within an organization tasked with overseeing the detection, investigation, and prevention of fraudulent activities and ensuring financial integrity.

Segregation of Duties

An internal control measure that involves dividing responsibilities among different people to reduce the risk of error or inappropriate actions in financial transactions.

Authorize and Pay

The process of approving financial transactions or disbursements and executing the payment accordingly.