Reference no: EM132645460

Question 1: The primary determinants of the damage model used in a case are

A) the guidelines provided by the Association of Certified Fraud Examiners (ACFE).
B) the American Institute of Certified Public Accountant (AICPA) guidelines.
C) the American Bar Association (ABA) rules.
D) state laws in the state the case is being tried.

Question 2: Georgetown Company's weekly store operating costs for a 10-week period had a value of $300,000 and a low value of $260,000. Sales volumes for the 2 weeks were $4,000,000 and $3,200,000 respectively. At a sales level of $3,500,000, the estimated store operating costs using the high-low method of cost analysis would be

A) $175,000.
B) $300,000.
C) $275,000.
D) $260,000.

Question 3: Georgetown Company's weekly store operating costs for a 10-week period had a value of $300,000 and a low value of $260,000. Sales volumes for the 2 weeks were $4,000,000 and $3,200,000 respectively. The estimated variable cost per dollar of sales using the high-low method is

A) $0.1067 per sales dollar.
B) $0.08125 per sales dollar.
C) $0.075 per sales dollar.
D) $0.05 per sales dollar.

Question 4: Jones Lumber had an exclusive 5-year supply agreement with Wood Construction. The contract called for lumber sales of $3,000,000 per year. After 3 years, Wood Construction canceled the contract without cause. The court found Wood Construction liable under the contract. Jones Lumber had average gross margins of 50% and average net income of 20% of sales. Jones Lumber's operating expenses average 60% fixed. The damages from the loss of this contract would be

A) $1,200,000.
B) $720,000.
C) $2,280,000.
D) $3,000,000.

Question 5: In analyzing cost behavior data for cases, most experts find that the most effective and defensible analysis method is

A) high-low.
B) correlation-regression.
C) scatter diagram.
D) experienced employee information.