Which of the Following Statements Best Describes the Business Value

question 94

Multiple Choice

Which of the following statements best describes the business value of improved decision making?

• A)Improved decision making creates better products.
• B)Improved decision making results in a large monetary value for the firm as numerous small daily decisions affecting efficiency,production,costs,and more add up to large annual values.
• C)Improved decision making enables senior executives to more accurately foresee future financial trends.
• D)Improved decision making strengthens customer and supplier intimacy,which reduces costs.
• E)Improved decision making creates a better organizational culture.

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Definitions:

Inventories

Resources allocated for trading within normal business practices, including those being prepared for sale or as materials and supplies meant for depletion during production or in service rendering.

AASB 10

The Australian Accounting Standards Board regulation that sets out the requirements for preparing and presenting consolidated financial statements when an entity controls one or more other entities.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as if the group were a single economic entity.

Intragroup Transactions

Transactions that occur between entities within the same group of companies, often leading to the need for elimination adjustments in consolidated financial statements.