One Potential Disadvantage of IT Systems Is the Reduction or Elimination

question 45

True/False

One potential disadvantage of IT systems is the reduction or elimination of source documents, which reduces the visibility of the audit trail.

---

Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on.

Accounting Profits

The total revenue of a company minus the explicit costs, not including opportunity costs, showing the financial performance.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs.

Speeding Ticket

A penalty issued by law enforcement to a driver who is found to be exceeding the legal speed limit.