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An Abnormal Fluctuation in Gross Profit That Might Suggest the Need

question 39

Multiple Choice

An abnormal fluctuation in gross profit that might suggest the need for extended audit procedures for sales and inventories would most likely be identified in the planning phase of the audit by the use of:


Definitions:

Decrease In Demand

A shift in the demand curve to the left, indicating that consumers are willing to purchase less of a product at every price point.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to buy.

Market Demand Curve

A graphical representation showing the quantity of a particular good or service that consumers are willing and able to buy at various prices.

Individual Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity of the good a single consumer is willing to buy at those prices.

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