The Flexibility Principle of Accounting Information Systems Requires That The

question 69

Multiple Choice

The flexibility principle of accounting information systems requires that the:

• A)Benefits from an activity outweigh the costs of the activity.
• B)System report useful,understandable,timely,and pertinent information for effective decision making.
• C)System aid managers in controlling and monitoring business activities.
• D)System adapt to changes in the company,business environment,and needs of decision makers.
• E)System conform with a company's activities,personnel,and structure.

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Definitions:

Current Price

Refers to the present market value of a product, security, or commodity.

Net Operating Income

This represents the profit a company generates from its core business operations, excluding expenses from interest and taxes.

Price Reduction

A decrease in the selling price of goods or services, often used as a strategy to increase demand or sales volume.

Sales Forecast

An estimate of the amount of goods or services a company expects to sell in a future period.