The ________ Principle Requires That an Accounting Information System Must

question 121

Short Answer

The ________ principle requires that an accounting information system must be able to adapt to changes in the company, business environment, and needs of decision makers.

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Definitions:

Price-Making Ability

The capacity of a firm or entity to influence the price of goods or services in the market rather than accepting the market price as given.

Marginal Cost

The outlay required to produce an additional unit of a product or service.

Profit-Maximizing Level

The point at which a firm achieves the highest possible profit, typically where marginal costs equal marginal revenue.

Marginal Revenue

The additional income that a firm receives from selling one more unit of a good or service.