Complexity in Accounting Systems

question 37

Multiple Choice

Complexity in accounting systems:

• A) can usually be justified on a cost- benefit basis
• B) is desirable if it reflects the complexity of the underlying business
• C) is necessary to manage the behavioral implications of the accounting system
• D) frequently generates costs of gathering and interpreting data that often exceed prospective benefits

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Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant or unchanging stimuli.

Stimulus Energies

The physical or environmental energies that an organism can detect and respond to, such as light, sound, and temperature.

Sensory Receptors

Specialized cells or nerve endings that respond to changes in the environment and transmit signals to the nervous system.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.