The Advantage of Using the Negative Form of Confirmations Is

question 96

Multiple Choice

The advantage of using the negative form of confirmations is that:

• A) follow- up procedures are scheduled automatically.
• B) it is appropriate in all circumstances.
• C) larger sample sizes can be used without increasing the costs above what would have been required for positive confirmations.
• D) customer's silence proves that the balance is correct.

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Definitions:

Long Run

A period in economics in which all factors of production and costs are variable, allowing for full adjustment to change.

Marginal Cost

The increase in total cost that arises from an extra unit of production.

Total Revenues

Total Revenues refer to the total receipts from sales of goods or services by a company before any expenses are subtracted.

Fixed Costs

These stay the same no matter how much output changes.