Which of the Following Statements Regarding Accounting Information Systems Is

question 133

Multiple Choice

Which of the following statements regarding accounting information systems is not true?

• A) Accounting information systems cannot improve on a company's competitive edge.
• B) Accounting information systems are designed to capture information about a company's transactions.
• C) Accounting information systems are more important than ever to decision makers.
• D) Accounting information systems consist of people, records, methods, and equipment.
• E) Accounting information systems are designed to provide output including financial, managerial, and tax reports.

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Definitions:

Marginal Cost

The rise in expenses associated with the production of an extra unit of a product or service.

Price-searcher Firm

A company that determines the price of its products based on demand and supply conditions rather than prevailing market prices.

Competitive Price-searcher

A market scenario where sellers actively seek out buyers by setting prices independently to capture consumer demand.

Raise Price

The act of increasing the cost at which a good or service is sold, which can affect demand, revenue, and profit margins.