As a Certified Management Accountant,Derek Is Bound by the Standards

question 49

Multiple Choice

As a Certified Management Accountant,Derek is bound by the standards of ethical conduct issued by the Institute of Management Accountants.According to the standards,Derek has a responsibility to:

• A) inform subordinates that they should protect confidential information.
• B) ensure that financial accounting records are maintained as per the governing guidelines.
• C) monitor the activities of subordinates to assure that confidentiality is maintained.
• D) inform subordinates that they should protect confidential information and monitor the activities of subordinates to assure that confidentiality is maintained.

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Definitions:

Expected Profit Rate

The forecasted return on an investment over a specified period, taking into account both potential gains and losses.

Non Oil

Pertaining to economic sectors or industries that are not related to the extraction or processing of oil.

Corporation

A legal entity that is separate and distinct from its owners, capable of conducting business, entering into contracts, and owning assets.

Inventory Investment

The purchase of goods and materials for future sale or use, representing a business investment in stock.