Which of the Following Statements Is Not Correct

question 147

Multiple Choice

Which of the following statements is not correct?

• A) It is possible to vary the sample size from one unit to 100% of the items in the population.
• B) Cost is an adequate justification for not gathering an adequate sample size.
• C) The decision of how many items to test must be made by the auditor for each audit procedure.
• D) The sample size for any given procedure is likely to vary from audit to audit.

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Definitions:

Monopoly Power

Monopoly power denotes the extent to which a firm can set the price for its product above marginal cost due to the lack of competition in its market.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual market price they receive.

Competitive Level

pertains to the degree of competition within a market, influencing factors such as pricing, product differentiation, and market entry or exit.

Price Regulation

Government or authoritative body's imposition of laws and rules to control the prices charged for goods and services in the market to prevent price gouging or ensure affordability.