Which of the Following Is Not a Characteristic of an Effective

question 111

Multiple Choice

Which of the following is not a characteristic of an effective cost system?

• A)Decision focus
• B)Different costs for different purposes
• C)Cost-benefit test
• D)Generally accepted accounting principles compliant

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Definitions:

Hedging

Hedging is an investment strategy used to minimize the risk of adverse price movements in an asset, typically by taking an offsetting position in a related security.

Risk Profile

An evaluation of an individual or organization's willingness and ability to take risks, often influencing investment choices.

Troy Ounces

A troy ounce is a unit of imperial measure, commonly used to gauge the weight of precious metals such as gold and silver, where one troy ounce is equivalent to approximately 31.1 grams.

Hedged

involves utilizing financial instruments or market strategies to offset the risk of adverse price movements.