Which of the Following Statements About Cost Accounting Systems Is

question 10

Multiple Choice

Which of the following statements about cost accounting systems is FALSE?

• A) The cost accounting system provides the cost data that managers use for decision making.
• B) The cost accounting system is the most fundamental component of a cost management system.
• C) A cost accounting system that provides accurate information is a key success factor for all types of organizations.
• D) Some types of organizations do not need cost accounting systems.

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Definitions:

Majority Rule

A decision-making process that follows the preference of more than half of the members in a group.

Public Choice Analysis

An economic theory that studies how public decisions are made, considering individuals as rational actors who pursue their self-interest.

Self-Interests

The pursuit of personal advantage and well-being, often driving economic decisions and behaviors.

Economic Inefficiency

A situation where resources are not allocated optimally, leading to wastage and a loss of potential value.