Which of the Following Is the Best Reason Why Cost

question 92

Multiple Choice

Which of the following is the best reason why cost accounting information does not need to be comparable to similar information in other organizations?

• A) Because it is only used by investors and creditors.
• B) Because no publicly traded companies use cost accounting.
• C) Because IFRS and cost accounting are converging which eliminates the need for comparability.
• D) Because managers that use this information are making decisions only for their organization.

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Definitions:

Call Option

A contractual agreement that allows the buyer the choice, without any requirement, to purchase an asset at an agreed-upon price within a set period.

Stock Price

The current trading price of a company's shares on the stock market, reflecting the market's valuation of the company at a particular time.

Warrants

These are financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price before a specific date.

IPO Offering

The initial sale of stock to the public by a company, a critical moment in a private company’s lifecycle to raise capital and enhance its visibility.