The Ultramares V

question 11

True/False

The Ultramares v.Touche case held that auditors could be held liable to any foreseen third party for ordinary negligence.

---

Definitions:

Average Total Cost

The per unit cost of production, calculated by dividing total cost by the total quantity of output produced.

Average Variable Cost

The total variable costs divided by the quantity of output produced, reflecting the per unit cost of variable inputs.

Average Fixed Costs

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced, a measure that decreases as production increases.

Average Variable Costs

The sum of all costs that fluctuate based on the amount of production, divided by the total units of output created.