Which of the Following Is Not a Factor That Tends

question 29

Multiple Choice

Which of the following is not a factor that tends to increase the inherent risk for purchasand payables?

• A) the number of directors.
• B) A high volume of transactions.
• C) issues over costs being capitalized versus expensed
• D) all are factors that tend to increase the inherent risk for purchases and payables.

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Definitions:

Reallocation

The process of distributing or reallocating resources, tasks, or investments in a different manner with the aim to improve efficiency, returns, or outcomes.

Utility Increase

A rise in the level of satisfaction or benefit that a consumer derives from the consumption of goods or services.

Contract Curve

In economics, it represents the set of optimal distributions of goods or resources between parties that maximizes their utility in an exchange.

Relative Price

The price of a good or service in comparison to the price of other goods and services, reflecting its opportunity cost.