An Example of Possible Management Bias Would Be _______

question 69

Multiple Choice

An example of possible management bias would be _______.

• A)changes in the method of making the accounting estimate that are based on subjective assumptions
• B)using management's own assumptions for fair value estimates when they are inconsistent with readily observable market assumptions
• C)selecting or developing significant assumptions that yield an estimate more favorable for management's objectives
• D)All of these answer choices are correct.

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Definitions:

Fixed Factor

A resource in the production process that remains constant, regardless of the level of output or production over a certain time period.

Total Product Curve

A graphical representation showing the output of a firm in relation to a single input while holding other inputs constant.

Marginal Product

The additional output produced as a result of adding one more unit of a particular input, keeping other inputs constant.

Average Product

The ratio of total product to the amount of input used, determined by dividing the overall output by the input quantity.