Which of the Following Are Examples of Human Bias That

question 67

Multiple Choice

Which of the following are examples of human bias that could cause an impediment in the application of professional skepticism?

• A)An overconfidence in management
• B)A desire to keep audit costs low
• C)A desire to sell other services to the client
• D)An attempt to meet multiple deadlines simultaneously

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Total Output

Total output is the complete quantity of goods or services produced by an economy, firm, or production process within a specific period.

Marginal Cost

The additional cost incurred by producing one more unit of a product.

Average Variable Cost

The per unit cost of production excluding fixed costs, calculated by dividing the total variable costs by the quantity of output produced.