The Two Qualitative Characteristics That Are Defined in Terms of What

question 65

Multiple Choice

The two qualitative characteristics that are defined in terms of what influences or makes a difference to a decision maker are

• A) faithful representation and materiality.
• B) comparability and timeliness.
• C) relevance and understandability.
• D) materiality and relevance.

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Definitions:

Freight Bill

An invoice issued by a carrier detailing the charges applicable for the shipment of goods.

Total Cost

The complete sum of all costs associated with producing or acquiring goods and services, including direct, indirect, fixed, and variable costs.

Responsiveness

The ability of a system or organization to quickly and effectively react to changes.

Carrier

A company that provides transportation services for goods, typically via land, sea, or air.