Volkswagen \"Diese|gate\" scandal 95 https://www.justice.gov/criminal-fraud/sff/

Question

Volkswagen "Diese|gate" scandal 95 https://www.justice.gov/criminal-fraud/sff/cases-corporate/volkswagen-ag Conduct research on Volkswagen's Dieselgate scandal. Select one of the senior executives or engineers that have been charged by the US Department of Justice. Study their career life, especially their involvement in the candal. Then answer the following two questions 1) Using the fraud triangle theory, analyse what factors (pressure, opportunity and rationalisation) contributed to the selected personnel being complicit in this act of deceit? 2) Conduct a cost-benefit analysis, either from the Volkswagen group's perspective or the selected personnel's perspective, and determine if the benefits (financially) gained from committing the fraud outweigh the losses (financially) that have incurred.

Explanation / Answer

Marginal analysis involves a cost-versus-benefits comparison of various business activities. In marginal analysis, the cost of an activity is measured against incremental changes in volume to determine how the overall change in cost will affect the bottom line of a business. Marginal analysis can show the cost of additional production by a business all the way up to the break-even point. This is generally the maximum cost that a business can sustain without losing money.

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