Which of the Following Statements Is False

question 64

Multiple Choice

Which of the following statements is false?

• A) Credit card companies usually block stolen credit cards rather than prosecute.
• B) People tend to shortcut security procedures because the procedures are inconvenient.
• C) It is easy to assess the value of a hypothetical attack.
• D) The online commerce industry isn't willing to install safeguards on credit card transactions.
• E) The cost of preventing computer crimes can be very high.

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Definitions:

High-low Method

A technique in managerial accounting used to estimate variable and fixed costs by analyzing the highest and lowest levels of activity.

Variable Cost Per Unit

The cost that varies with the level of output or activity, calculated on a per-unit basis.

Fixed Costs

Expenses that do not change with changes in the level of production or sales, such as rent, salaries, and insurance.

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, used to cover fixed costs and generate profit.