Regarding the Means by Which Relevant Costs and Benefits Are

question 91

Multiple Choice

Regarding the means by which relevant costs and benefits are evaluated when evaluating quality improvement, the key question is:

• A)which alternative solution will make the customer happiest
• B)how total costs and total revenues will change under each alternative solution
• C)will the employees of the company be able to implement the change
• D)how long will it take for the improvement program to be fully functional

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Definitions:

Subjective Estimates

Judgments or opinions used in decision-making or accounting that are based on personal feelings or beliefs rather than on precise measurement.

Financial Accounting

The field of accounting that focuses on the summary, analysis, and reporting of financial transactions pertaining to a business to external users.

Managerial Accounting

The area of accounting focused on providing financial data and advice to company managers for decision-making purposes.

GAAP

Generally Accepted Accounting Principles encompass a series of standard accounting practices and rules for the creation of financial reports.