The 1991 U

question 31

Multiple Choice

The 1991 U.S. Federal Sentencing Guidelines called for the assignment of specific high‐level individuals with responsibility to oversee legal compliance standards. This requirement led to the development of a brand new role that of the _____.

• A) chief executive officer
• B) chief information officer
• C) corporate ethics officer
• D) corporate arbitrator

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Definitions:

Fixed And Variable

Terms describing costs within a business; fixed costs do not change with the volume of production, while variable costs do.

Production Budget

A plan that outlines the number of units that need to be produced to meet sales demands and inventory requirements.

Master Budget

An integrated set of operating and financial budgets for a period of time.

Flexible Budgeting

A budgeting process that allows for adjustments based on changes in the volume of activity or other factors.