The Two Secondary Qualities of Accounting Information to Make It

question 42

Multiple Choice

The two secondary qualities of accounting information to make it useful for decision making are:

• A) consistency and comparability.
• B) relevance and reliability.
• C) materiality and comparability.
• D) full disclosure and relevance.

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Definitions:

Marginal Costs

The additional charge associated with making one more unit of a product or service.

Fixed Capital

Assets and investments in physical goods such as buildings and machinery that are not consumed in the production process.

Variable Labor

Labor costs that vary directly with the level of production or business activity.

Average Cost

The total cost divided by the number of units produced, indicating the cost per unit of output.