Which of the Following Most Exemplifies the Value-Added Principle

question 77

Multiple Choice

Which of the following most exemplifies the value-added principle?

• A) An ongoing process where continuous improvement is the goal.
• B) A competitive management program that emphasizes quality.
• C) Information gathering and reporting activities should be restricted to those activities that add value in excess of their cost.
• D) Managerial accounting information is measured in economic, physical, and financial terms.

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Definitions:

Carrying Amount

The book value of assets and liabilities as reported in the financial statements, factoring in depreciation, amortization, and impairment.

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate policy and the selection of board members.

Investment Account

A financial account held at a bank or brokerage that is used to hold securities, stocks, bonds, and other investments.

Unamortized Acquisition Differential

The portion of the difference between the purchase price and the book value of an acquired entity that has not yet been amortized.