Which Statement Below Regarding the AIS Is False

question 20

Multiple Choice

Which statement below regarding the AIS is false?

• A)The AIS must be able to provide managers with detailed and operational information about the organization's performance.
• B)Both traditional financial measures and operational data are required for proper and complete evaluation of performance.
• C)The AIS was often just one of the information systems used by an organization to collect and process financial and nonfinancial data.
• D)Traditionally,most AIS have been designed so that both financial and operational data are stored in a manner that facilitates their integration in reports.

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Definitions:

Break-even Sales

The amount of revenue from sales that is exactly sufficient to cover all fixed and variable expenses, resulting in zero profit or loss.

Break-even Point

The point at which total expenses match total income, leading to neither a loss nor a profit.

Unit Variable Cost

The cost that varies with each unit of product produced, encompassing materials and labor but not fixed costs.

Sales Required

The minimum sales needed to achieve a specific financial goal or to cover costs.