Which of the following is not a conflict of interest in accounting firms?
A) The firm provides consulting as well as rating creditworthiness.
B) Auditors may be pressured to skew their opinions so the client will stay with the firm.
C) Auditors may be reluctant to criticize advice put into place by nonaudit personnel of the firm.
D) Auditors release an overly favorable audit in order to solicit business.
A
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A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . All else equal, if the firm continues its production in the same economic environment, the firm's economic profits should
a. increase if output is low enough b. decrease c. stay the same d. increase if output is high enough
Which statement is false?
A. Health and safety regulations diverted resources from investment. B. Higher energy costs stimulated economic growth. C. Environmental protection legislation slowed economic growth. D. Government regulation has increased the cost of doing business.
A shift from S1 to S2 causes equilibrium price to __________ and quantity to __________.
A. rise; rise
B. fall; fall
C. rise; fall
D. fall; rise
A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts. The firm wants to minimize the net cost of warehouse thefts.
Given the above info, in order to minimize the NET cost of theft, a firm should choose the level of theft prevention at which
A. the total benefit of theft prevention equals the total cost of the theft prevention. B. the marginal benefit of theft equals the marginal cost of the theft. C. the total cost of theft prevention equals the total cost of preventing theft. D. theft is eliminated. E. the marginal benefit of theft prevention equals the marginal cost of preventing theft.