Accounting Principles

question 37

Multiple Choice

Accounting principles:

• A)should be accepted by people and organisations who need financial information to make decisions.
• B)explain financial phenomena.
• C)are similar to natural laws,like the law of gravity.
• D)apply only to large business organisations.

---

Definitions:

Annual Fixed Cost

Regular, unchanging expenses incurred by a business, regardless of its level of production or sales volume within a year.

Profit-Maximizing

A method or strategy executed by a company aiming to achieve the highest possible profit given the constraints it faces.

Marginal Cost

The cost of producing one additional unit of a good or service, crucial for economic decision-making.

Antitrust Laws

Legislation enacted to prevent new monopolies' formation and promote competition by regulating anti-competitive conduct by companies.