Which of the Following Is NOT an Assumption on the Existence

question 43

Multiple Choice

Which of the following is NOT an assumption on the existence of efficient markets?

• A)investors will react quickly to new information
• B)information arrives randomly and independent of any other information
• C)there are a small number of rational, well-informed and profit motivated investors
• D)information is widely available to the market, with no cost

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Definitions:

Cost Driver

Any factor that causes a change in the cost of an activity or production process.

Sequential Method

A costing method used in process costing that allocates costs to products in a specific sequence, often used for products that go through consecutive processes.

Cafeteria Department

A functional division within an organization that provides food and beverage services to employees.

Reciprocal Services Method

A cost allocation technique used in managerial accounting to allocate costs between interdependent departments by solving simultaneous equations.