Which of the Following Does Not Apply to a Codificational

question 19

Multiple Choice

Which of the following does not apply to a codificational system such as accounting standards?

• A)It is pragmatic because maximizing the standards is impossible.
• B)Outputs are evaluated on the basis of whether they work correctly.
• C)Outputs are evaluated on the basis of whether they provide information to users at a reasonable cost.
• D)Outputs are correct in terms of deductive logic.

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from the production and consumption of goods or services.

Producer Surplus

The discrepancy between the price sellers are ready to accept for an item and the price they actually receive.

Equilibrium Price

The cost point where the amount of a product or service consumers want to buy matches the amount available, resulting in a balanced market.

Equilibrium Quantity

The quantity of goods or services supplied equals the quantity demanded at the market equilibrium price.