Maximum Benefit from Independent Checks of Performance Is Obtained When

question 84

Multiple Choice

Maximum benefit from independent checks of performance is obtained when

• A)it is made on a pre-announced basis.
• B)it is done by the employee possessing custody of the asset.
• C)discrepancies are reported to management.
• D)it is done at the time of the external audit.

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Definitions:

Marginal Social Cost

An increased charge to the general public for the creation of one more unit of a product or service.

Pollution

The presence in or introduction into the environment of a substance or thing that has harmful or poisonous effects.

Marginal Social Benefit

The additional benefit society gains from consuming one more unit of a good or service.

Marginal Social Cost

The additional cost imposed on society as a whole by producing one extra unit of a good or service.