A Cost Accounting System Should Be Revised When

question 30

Multiple Choice

A cost accounting system should be revised when

• A)the existing cost accounting system provides information that is representative of operations.
• B)the existing cost accounting system could be updated, just to keep ahead.
• C)the existing cost accounting system does not produce information that reflects the way various products use scarce resources.
• D)management wants to change the system, even though the information is relevant and correct.
• E)a new system would be easier to understand but would not be reliable.

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Commercially Attractive

Refers to properties or qualities that appeal to business interests or harbor potential for economic gain.

Coal

A combustible black or brownish-black sedimentary rock used primarily as a source of energy.

Petroleum

A naturally occurring, yellowish-black liquid found beneath the Earth's surface, used primarily as a fuel source in its refined form.

Commercial Energy

Energy that is produced and sold for profit, including fossil fuels, nuclear, and renewable energy sources used in industrial, commercial, and residential settings.