Star,Inc ,Is Attempting to Decide Whether or Not If It

question 80

Multiple Choice

Star,Inc. ,is attempting to decide whether or not if it should change its manufacturing process to a new type of technology.This represents a(n) ______________ decision.

• A) programmed
• B) nonprogrammed
• C) groupthink
• D) intuitive
• E) satisficing

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Definitions:

Cost Principle

Accounting principle that requires assets, services, and goods to be recorded at their original cost rather than their current market value.

Cost Principle

An accounting principle that states transactions and assets should be recorded at their original purchase cost, factoring out any market value changes.

Revaluing Assets

The process of adjusting the book value of an asset to reflect its current market value rather than its original purchase price.

Major Disadvantage

A significant or principal drawback that adversely affects the effectiveness, efficiency, or desirability of an object, system, or method.