Circumstantial Variables Are Environmental Conditions That Possess Which of the Following

question 31

Multiple Choice

Circumstantial variables are environmental conditions that possess which of the following qualities?

• A)Excessive measurement costs
• B)A high degree of verifiability relative to other accounting methods
• C)Both a and b
• D)None of the above

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Definitions:

Accounting Profits

The difference between total revenue and explicit costs of a business, calculated using principles of accounting.

Economic Profits

The surplus left after total costs (including both explicit and implicit costs) are subtracted from total revenues.

Short-Run Marginal Costs

Costs associated with producing one more unit of a good or service in the short term, where some inputs are fixed.

Market Price

The current price at which an asset or service can be bought or sold in the open market.