With Respect to Ethics, the Utilitarian Theory

question 40

Multiple Choice

With respect to ethics, the utilitarian theory:

• A)suggests that auditors should always verify ownership of a client's material tangible assets.
• B)is primarily concerned with equity and impartiality.
• C)suggests that an individual's actions should not violate the rights of any individual.
• D)recognizes that decisions involve trade-offs between costs and benefits.

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Definitions:

Total Utility

The overall satisfaction or happiness a consumer derives from consuming a certain quantity of goods and services.

Marginal Utility

The extra benefit or utility gained from acquiring or consuming an additional unit of a product or service.

Utility Per Dollar

The amount of satisfaction or usefulness gained per unit of currency spent, used to measure consumer value.

Marginal Utility

Marginal utility is the change in total satisfaction or utility that a consumer experiences from consuming an additional unit of a good or service.