The Credibility Standard in the Statement of Ethical Professional Practice

question 43

Multiple Choice

The credibility standard in the Statement of Ethical Professional Practice of the IMA requires that an accounting professional should:

• A) Communicate information fairly and objectively
• B) Disclose all relevant information that might affect the intended user's understanding of the reports, analyses or recommendations
• C) Disclose delays or deficiencies in information, timeliness, processing or internal controls in conformance with organization policy and the law
• D) All of the above

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Definitions:

Marginal Cost

The price associated with manufacturing one more unit of a product or service.

Average Total Cost

The sum of all production expenses divided by the amount of goods produced.

Fixed Costs

Costs that do not vary with the level of production or services provided.

Marginal Cost Curve

A graphical representation that shows how the marginal cost of producing additional units changes with the level of output.