Which of the Following Statements Is True Regarding Accounting Information

question 81

Multiple Choice

Which of the following statements is true regarding accounting information systems?

• A) Both large and small firms should use the same type of accounting system.
• B) All firms should have the same types of transactions.
• C) The volume of data to be handled should not vary between firms.
• D) The kind of information that management requires of an accounting system will vary, depending on the type of firm.

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Definitions:

AVC

Average Variable Cost; the per unit variable cost associated with producing a good or service.

AFC

Average Fixed Cost; the total fixed costs of production divided by the quantity of output produced, illustrating how fixed costs spread out over produced units.

Short Run

A period in which at least one input in the production process is fixed, limiting the ability to change production levels significantly.

Total Cost

The sum of fixed and variable costs incurred by a business in producing a certain level of output.