In Developing an Accounting System Cost Effectiveness Does Not Imply

question 91

Multiple Choice

In developing an accounting system cost effectiveness does not imply that

• A) the benefits obtained from the system outweigh the costs.
• B) an electronic system must be cheaper than the system it is replacing.
• C) the system should be cost effective.
• D) the value of an accounting report should be at least equal to the cost of producing it.

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Definitions:

Efficiency Wages

The theory that employers may pay wages above the market rate to increase worker productivity, reduce turnover, and encourage loyalty.

Employee Turnover

The rate at which employees leave a workforce and are replaced by new employees.

Job Specification

A job specification focuses on the individual who will perform the job and indicates the knowledge, abilities, skills, and other characteristics that an individual must have to be able to perform the job.

Job Enrichment

A method to motivate employees by giving them more responsibilities and variety in their tasks, leading to increased satisfaction.