What Is the Advantage of Using the Negative Form of Confirmations

question 68

Multiple Choice

What is the advantage of using the negative form of confirmations?

• A) Customer's silence proves that the balance is correct.
• B) Larger sample sizes can be used without increasing the costs above what would have been required for positive confirmations.
• C) It is appropriate in all circumstances.
• D) Follow-up procedures are scheduled automatically.

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Definitions:

AVC

Average Variable Cost, the total variable costs divided by the quantity of output produced.

ATC

Average Total Cost; the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.

Output Values

The results or final products generated from a process, system, or activity.