How does the Sarbanes-Oxley Act of 2002 affect the responsibilities of the managers of publicly held US corporations?
What will be an ideal response?
Answers will vary.
Under the terms of the Act, the chief executive officer and chief financial officer are responsible for development and enforcement of a strong set of internal controls. The company must report on the effectiveness of its internal controls. The CEO and CFO have ultimate responsibility for the accuracy of the company's financial statements. They must certify that, to their knowledge, the financial statements do not include False information or omit information that would be material. The managers of the company are required to establish a code of ethics and to report on the code of ethics in the 10K annual report filed with the Securities and Exchange Commission. Managers are also required to provide mechanisms for anonymous reporting of fraud within the company (to protect a potential whistleblower).
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Price elasticity is the percentage change in quantity sold divided by the percentage change in price.
Answer the following statement true (T) or false (F)
Callaway Corp., which began business at the start of the current year, had the following data:Planned and actual production: 40,000 unitsSales: 38,000 units at $15 per unitProduction costs:Variable: $5 per unitFixed: $260,000Selling and administrative costs:Variable: $1 per unitFixed: $32,000The contribution margin that the company would disclose on a variable-costing income statement is:
A. $0. B. $342,000. C. $166,500. D. $120,000. E. None of the answers is correct.
Which of the following is considered an enhancer for leadership?
A. Increased group status B. Employee indifference toward rewards C. Staff available for problems D. Peer appraisal/feedback
In process costing, a separate work in process account is kept for each:
A. processing department. B. individual order. C. cost category (i.e., materials, conversion cost). D. equivalent unit.