The Full Disclosure Principle Says That If a Change Is

question 80

Multiple Choice

The full disclosure principle says that if a change is made:

• A)the company should disclose the change.
• B)the effects of the change on profit and inventory valuation should be disclosed.
• C)the company should show justification for the change in a footnote on the financial reports.
• D)All of these answers are correct.

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Definitions:

Scientific Management

A theory of management that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity.

Bureaucratic Organization

A structured and formal organization where rules, hierarchical structure, and detailed procedures guide operations and decision-making.

Classical Management

A theory of management that emphasizes a structured organizational hierarchy, a clear division of labor, and reliance on formal policies and procedures.

Administrative Principles

A set of concepts and practices related to managing and organizing businesses, emphasizing structure, of authority, division of work, and coordination of operations.