Asked by Pablo González on May 19, 2024
Verified
In developing an accounting system cost effectiveness does not imply that
A) the benefits obtained from the system outweigh the costs.
B) an electronic system must be cheaper than the system it is replacing.
C) the system should be cost effective.
D) the value of an accounting report should be at least equal to the cost of producing it.
Cost Effectiveness
A measure of the economic efficiency in terms of the cost incurred for a given outcome or result.
Accounting System
An organized set of manual and computerized accounting methods, procedures, and controls established to gather, record, classify, analyze, summarize, interpret, and present accurate and timely financial data.
Accounting Report
Documents that summarize the financial performance and position of an entity, such as income statements and balance sheets.
- Comprehend the essential principles of designing and developing an accounting information system, including cost effectiveness and flexibility.
Verified Answer
Learning Objectives
- Comprehend the essential principles of designing and developing an accounting information system, including cost effectiveness and flexibility.
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