Identify the Most Common Conflict of Interest Schemes

question 43

Multiple Choice

Identify the most common conflict of interest schemes.

• A)purchase schemes and sales schemes
• B)bid-rigging schemes and kickbacks
• C)ghost employees and commission schemes
• D)false refunds and false voids.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overheads, taxes, and interest payments.

Operating Expenses

Costs related to the day-to-day functions of a business outside of direct production costs, such as rent, salaries, and utilities.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and considered variable costs.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor used in creating the product.