Which of the Following Best Describes the Process of Setting

question 2

Multiple Choice

Which of the following best describes the process of setting accounting standards?

• A) A technical process where accounting experts determine the most technically correct and logical standards to issue
• B) A political process where the constituency affected either socially or economically by a proposed AASB standard have influence on the final outcome
• C) An exclusive process where the AASB sets the agenda and determines what standards to issue and what requirements they will contain
• D) An inclusive process where standards are proposed from various interested parties for approval by the AASB

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Definitions:

Relative Advantage

The degree to which a product or service is perceived as better than the existing alternatives by potential adopters.

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Diffusion of Innovation Theory

A theory that explains how, over time, an idea or product gains momentum and spreads through a specific population or social system.

Market Acceptance

The extent to which a new product or service is accepted and used by its target market and consumers.