In Terms of Using Accounting Data to Build an Effective

question 23

Multiple Choice

In terms of using accounting data to build an effective management control system,what is the nirvana fallacy?

• A)It is the tendency to use market-based transfer prices.
• B)It is the system of using accounting data for both decision management and decision control.
• C)It is the tendency to use cost centers rather than profit centers as the core of business structure.
• D)It is the belief that a perfect control system can be invented that will stop all fraud.

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Definitions:

Pineal Gland

A small endocrine gland in the brain that produces melatonin, a hormone that modulates sleep patterns.

Sleep Cycle

The progression through various stages of sleep, including REM (rapid eye movement) and non-REM stages, typically recurring several times throughout a typical sleep period.

Jet Lag

A temporary condition resulting from air travel across time zones, characterized by fatigue, insomnia, and other symptoms due to disruption of the body's internal clock.

Time Zones

A geographic region in which the same standard time is used.