If a Company Chooses to Use Computer-Based Accounting,which of the Following

question 46

Multiple Choice

If a company chooses to use computer-based accounting,which of the following is required?

• A) A standalone system that is dedicated to payroll processing.
• B) Annual software updates.
• C) Certification by a CPA prior to use for payroll processing.
• D) Certification and bonding of payroll personnel.

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Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced, indicating the cost per unit of output.

Pure Monopolist

A market structure in which a single seller dominates the entire market, facing no competition.

Profit-Maximizing Output

The level of production at which a company can achieve the highest possible profit, usually determined by marginal cost and marginal revenue analysis.

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product, without price discrimination.