Identify the Accounting Information System Principle Below That Applies to Each

question 41

Short Answer

Identify the accounting information system principle below that applies to each of these situations:
A. Flexibility
B. Compatibility
C. Control
D. Cost-benefit
E. Relevance
$\underline{\quad\quad\quad\quad\quad}$ 1. Global Company has designed its accounting information system so that key managers can obtain the information they need to make decisions relating to new products, sales, and controlling costs
$\underline{\quad\quad\quad\quad\quad}$ 2. Global Company's accounting information system has policies to ensure that financial statements are reliable, assets are protected, and relevant laws and regulations are complied with.
$\underline{\quad\quad\quad\quad\quad}$ 3. Global Company's accounting information system can be improved markedly for a cost of about $\$ 30,000,000$ . However, the incremental benefits from such improvements are not expected to outweigh this cost.
$\underline{\quad\quad\quad\quad\quad}$ 4. Global Company has worldwide operations that must handle several thousand different products, so the accounting information system is fairly complex, encompassing marketing and manufacturing.
$\underline{\quad\quad\quad\quad\quad}$ 5. Global Company has designed its accounting information system to be adaptable to changes in technology, the business environment, and the needs of decision makers

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Definitions:

Complex Problems

Issues or challenges that are multidimensional and difficult to solve because they involve intricate interdependencies and variables.

Alternative Options

Different choices or courses of action available as substitutes for the original plan or decision.

Evaluate Solutions

The process of assessing the effectiveness, feasibility, and potential impact of proposed solutions to a problem.

Integrative Agreements

Integrative agreements are solutions in negotiations that involve collaborative efforts to find mutually beneficial outcomes, often by expanding the resources or options available.