Which of the Following Statements Is Correct

question 42

Multiple Choice

Which of the following statements is correct?

• A) Under Legitimacy Theory, organisations disclose information in an endeavour to appear legitimate to the societies in which they operate.
• B) Under Legitimacy Theory, accounting disclosure policies are considered to constitute a strategy for influencing the organisation's relationships with the parties, or stakeholders, with which it interacts.
• C) Legitimacy Theory relies on the theoretical notion of a social contract, where there is multiplicity of implicit and explicit expectations that society has about how an organisation should conduct its operations.
• D) None of the given answers are correct.

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Definitions:

FIFO

"First In, First Out," an inventory valuation method where goods first bought are the first ones sold, assuming their cost flows in the order incurred.

Gross Profit

The difference between sales revenue and cost of goods sold, indicating how effectively a company generates profit from direct expenses.

Inventory Cost Formula

A method used to determine the cost of an inventory item, including methods such as First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and average cost.

Management

The process of planning, organizing, leading, and controlling an organization's resources to achieve specific goals.