Reducing the Amount of Human Input Can Decrease the Risks

question 26

Essay

Reducing the amount of human input can decrease the risks associated with a system's reliability. Why is this so? Why is this not always the best solution?

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Definitions:

Gross Method

An accounting practice where purchase discounts are ignored unless taken, with full invoice amounts recorded in the accounts payable.

Invoice Price

The price of goods as listed on the invoice, typically before any discounts, taxes, or additional charges.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials, labor, and overhead.