An Argument Raised by Opponents to the FASB's Proposal That

question 97

Multiple Choice

An argument raised by opponents to the FASB's proposal that employee stock options should be recognized as an expense was that it could

• A)violate the historical cost principle.
• B)violate the cost-benefit rule.
• C)violate materiality concepts.
• D)jeopardize compliance with contract terms and conditions.

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Definitions:

Trade-Offs

The balance achieved between two desirable but incompatible features; a compromise or negotiation between conflicting needs or requirements.

Supply Chains

Networks of businesses and processes that work together to produce and deliver a product or service to consumers.

Profit Margin

The percentage of revenue remaining after all expenses have been deducted from sales, indicating the financial health and efficiency of a business.

Efficient Supply Chains

Supply chains that are effectively managed to ensure the right products are delivered at the right time to the right place with minimal waste and cost.