It Is Important That Cost Management Systems Are Designed Using

question 74

True/False

It is important that cost management systems are designed using the cost-benefit principle so that the costs of gathering additional information are balanced against the benefits of that information.

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Definitions:

Bad Debts

Accounts receivable that a company is unable to collect, often written off as an expense because they are considered irrecoverable.

Accounts Receivable

Money owed to a business by its clients for goods or services delivered but not yet paid for.

Bad Debts

Amounts owed to a company that are not expected to be received, often due to the debtor being unable to pay. These are often written off as an expense.