The Financial Accounting Standards Board Is Responsible for

question 54

Multiple Choice

The Financial Accounting Standards Board is responsible for

• A)auditing financial statements.
• B)making recommendations to the Securities and Exchange Commission.
• C)developing generally accepted accounting principles.
• D)establishing accounting systems for businesses.

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Definitions:

Marginal Costs

The additional cost incurred to produce an extra unit of a product or service.

Average Costs

The total costs of production divided by the number of units produced, representing the cost per unit.

Returns To Scale

The change in output resulting from a proportional change in all inputs in the production process; can be increasing, constant, or decreasing.

Increasing Returns To Scale

See Economies of scale.