Which of the Following Is Not a Perceived Advantage in Developing

question 31

Multiple Choice

Which of the following is not a perceived advantage in developing a conceptual framework project?

• A) Standard-setters will be less accountable for their decisions.
• B) Setting accounting standards will be more economical, despite the resources needed to develop the conceptual framework and standards.
• C) It will result in a reduced number of accounting standards where issues are covered by the conceptual framework.
• D) It will provide a defence and enhance the legitimacy of the accounting profession.

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Definitions:

Fixed Costs

Expenses that do not change with changes in the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Cost

The expense incurred from manufacturing an extra unit of a product or service.

Average Cost

The total cost of production divided by the number of goods or services produced, often used to determine profitability.

Maximize Profit

The process or strategy by which a business attempts to achieve the highest possible profit from its operations, often by increasing revenue, reducing costs, or both.