If a Management Accountant Confides to a Relative That His

question 96

Multiple Choice

If a management accountant confides to a relative that his or her company has a confidential plan to merge with another company in the near future, the accountant has

• A) not violated ethical standards.
• B) violated ethical standards only if the relative owns stock in the company.
• C) violated ethical standards because the accountant and relative could stand to gain personally from that information.
• D) not violated ethical standards because the information was relayed to a family member.

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Definitions:

Short-Run Monopoly

A situation where one company dominates the market for a certain product or service temporarily, often before new entrants arrive.

Short Run

A time period in which at least one input, typically capital, is fixed, affecting the firm's capacity to adjust to changes in demand or production.

Producing

The act of creating, manufacturing, or otherwise bringing into existence goods or services to be offered for consumption or use by others.

ATC

Average Total Cost; the sum of all production costs divided by the quantity of output, representing the cost per unit including both fixed and variable costs.