Which of the Following Is NOT True

question 7

Multiple Choice

Which of the following is NOT true?

• A) Principles are more useful than rules because principles can be interpreted as new circumstances require.
• B) Rules are more useful than principles because rules can be interpreted as new circumstances require.
• C) A blend of principles and rules is often optimal.
• D) Principles are more useful than rules, and a blend of principles and rules is often optimal.
• E) All of these are correct.

---

Definitions:

Annual Rate of Return

The percentage return expected on an investment over a one year period.

Decision Rule

A decision rule is a guideline or criterion established for making decisions under conditions of uncertainty, aiming to achieve the best result based on available information.

Incremental Costs

Costs that change with the decision to produce more or less product or to undertake one action over another.

Incremental Processing

A method or process that involves analyzing the additional costs or benefits that arise from producing one additional unit of a product or offering one additional unit of service.