Which of the Following Procedures Will Usually Be Performed by the Auditor

question 22

Multiple Choice

Which of the following procedures will usually be performed by the auditor to actively determine obsolete inventory?

• A)Confirmation of inventory with customers.
• B)Footing the inventory subsidiary ledger.
• C)Tracing inventory ordered by the client to receiving reports.
• D)Analysis of inventory turnover and sales reports.

Distinguish between scenarios of zero and positive marginal costs and their implications for monopoly pricing and output.

Apply the concept of price elasticity of demand in the context of monopoly pricing.

Examine the effects of changes in market conditions (like annexation or invention of new products) on monopoly behavior.

Understand the effect of fixed costs and marginal costs on the production decisions of a monopolist.