Section 404 of the Sarbanes-Oxley Act States That

question 84

Multiple Choice

Section 404 of the Sarbanes-Oxley Act states that:

• A) annual reports must contain a statement signed by the CEO and CFO attesting that the information in all of the firm's SEC filings is accurate.
• B) public companies must disclose their code of ethics as well as any waiver of the code for certain members of senior management.
• C) a code of ethics must be easily accessible by employees, shareholders, business partners, and the public.
• D) the code of ethics must continually be applied to a company's decision making and emphasized as an important part of its culture.

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Definitions:

ΔTVC/Δq

ΔTVC/Δq represents the change in Total Variable Cost (TVC) resulting from producing one additional unit of output, equivalent to Marginal Cost.

AVC

AVC, or Average Variable Cost, is the total variable costs divided by the quantity of output produced.

MC

Marginal Cost, the increase in total cost that arises from producing one additional unit of a product or service.

Total Variable Cost

Total Variable Cost is the sum of all costs that vary with the level of output produced, such as materials and labor.