Which of the Following Is Necessary in Order for Accounting

question 7

Multiple Choice

Which of the following is necessary in order for accounting numbers to be effective in decision monitoring?

• A)The controller reports to the audit committee of the board of directors.
• B)The CEO and senior management use the accounting system to check on the performance of the board of directors.
• C)Financial measures used at the corporate level are used to make operating decisions.
• D)Accounting reports are subjective and available on an as-needed basis.
• E)All of the choices.

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Definitions:

Product Cost

An accounting measure that includes all costs required to bring a product to market, specifically focusing on direct materials, direct labor, and overhead costs.

Assembler's Wages

Compensation paid to workers specifically engaged in assembling products during the manufacturing process.

Direct Labor

The cost of wages for workers who are directly involved in the production of goods or services.

Product Cost

The expenses directly related to manufacturing the products a company sells, such as materials, labor, and overhead costs.