Regarding Relevant Nonfinancial Information,which of the Following Statements Is Incorrect

question 36

Multiple Choice

Regarding relevant nonfinancial information,which of the following statements is incorrect?

• A) Nonfinancial, or qualitative, factors play a role in managers' decisions and, as a result, can be relevant.
• B) Relevant qualitative information has the same characteristics as relevant financial information.
• C) Managers must always consider the potential quantitative and qualitative effects of their decisions.
• D) Qualitative factors can be ignored because these factors are difficult to measure.

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Definitions:

Financial

Relating to money or how money is managed.

Social

Relating to society or its organization, including interactions and relationships within.

United States Environment Protection Authority

A federal agency tasked with protecting human health and the environment by creating and enforcing regulations based on laws passed by Congress.

Prevention Costs

Expenditures incurred to prevent defects in products or services, including costs related to quality planning, training, and preventive maintenance.