Which of the Following Statements About the Characteristics and Costs

question 4

Multiple Choice

Which of the following statements about the characteristics and costs of useful information is true?

• A) Raw data become information as soon as the facts and figures are manipulated.
• B) For information to be useful, it has to be malleable, concrete, reliable, and timely.
• C) Obtaining good information incurs negligible costs in terms of acquisition, processing, storage, retrieval, and communication.
• D) Useful information does not come cheaply.
• E) All of these statements about the characteristics and costs of useful information are true.

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead involved in transforming raw materials into finished goods.

Raw Materials

Basic materials that are used in the production process to create goods and products.

Debt Securities

Financial instruments representing money borrowed that must be repaid, which include bonds, bills, and notes issued by governments or corporations.

Interest Revenue

The income earned from lending money or from investing in interest-bearing financial instruments.