The Most Significant Factor in Determining Whether an Organization Will

question 6

Multiple Choice

The most significant factor in determining whether an organization will have staff personnel is ________.

• A)the size of the organization
• B)the qualifications of the workers
• C)the type of industry
• D)the degree of centralization in the organization
• E)the nature of the products and service produced

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Definitions:

Materiality

An accounting principle that means the significance of financial information to decision makers, considering its size or its nature.

Relevance

The importance of financial information in making economic decisions, ensuring that the data presented affects the users' understanding and actions.

Standard Setters

Organizations or bodies responsible for establishing norms and guidelines in various fields, such as accounting or industry standards.

Historical Cost

Historical cost is an accounting principle that records assets and transactions at their original purchase price, without adjusting for inflation or market changes.