Regulators of industries granted monopoly privileges use financial statement data in setting allowable charges for the services these industries provide.

Question

Quizplus · Accepted Answer

Regulators use financial statement data to determine the profitability of the company, which in turn affects the allowable charges or rates the company can charge for their services. This is done to ensure that consumers receive fair pricing and the company isn't taking advantage of their monopoly privileges.

Regulators of Industries Granted Monopoly Privileges Use Financial Statement Data