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What Are the Five Major Types of External Forces That

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Essay

What are the five major types of external forces that should be examined as part of an external audit? Give an example of each type of force.


Definitions:

Marginal Cost

The expense incurred by producing one additional unit of a product.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, reflecting the average cost of each unit of output on variable factors.

Exclusive Right

A legal entitlement granting someone the sole authority to engage in a certain activity or use a specific property.

Profit

The financial gain obtained when the total revenues generated from selling goods or services exceed the total costs and expenses to produce them.

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