Which of the Following Is Likely to Be an Advantage

question 46

Multiple Choice

Which of the following is likely to be an advantage of the advancement of technology on financial reporting?

• A) Users of financial information will have access to more information.
• B) The quality and reliability of the information may be compromised.
• C) Equal and fair access may be at issue.
• D) Internet reporting will increase costs.

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Definitions:

Standard Costs

Predetermined costs for materials, labor, and overhead, against which actual costs are compared.

Cost of Goods Sold

Expenses directly associated with producing goods a company sells, entailing labor and material costs.

Standard Cost Variances

The differences between actual costs and standard costs in manufacturing, divided into categories such as materials, labor, and overhead.

Administrative Expenses

Overhead or general expenses related to the day-to-day operations of a business that are not directly tied to a specific project.