Which Statement Concerning Triple Bottom Line Reporting Is Not Correct

question 21

Multiple Choice

Which statement concerning triple bottom line reporting is not correct?

• A)It means that the need for goods and services should be met without destroying natural or social capital.
• B)Companies tend to report favourable news rather than unfavourable news.
• C)It only deals with things that can be measured.
• D)The phrase was coined by John Elkington.

Acknowledge the necessity of top management intervention in resolving transfer price disputes.

Understand operational performance metrics such as net operating income, margin, turnover, and ROI calculations.

Understand the concept of margin in the context of investment opportunities and company operations.

Comprehend and apply the return on investment (ROI) formula to evaluate company performance.

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Definitions:

Physical Count of Inventory

An actual count of all merchandise or stock on hand, typically conducted at the end of an accounting period to verify inventory records.

Periodic Inventory System

An inventory system where counts are carried out at specific intervals to determine the level of inventory at a particular time.

Most Recent Costs

The latest costs incurred in acquiring or producing goods and services, often used in inventory valuation and costing methods.

Cost of Merchandise Sold

The direct costs tied to the production of goods sold by a company, including the cost of the materials and labor.