The Cost/benefit Constraint Mentioned in the FASB Conceptual Framework Is

question 10

Multiple Choice

The cost/benefit constraint mentioned in the FASB conceptual framework is important in all areas of accounting. Which of the following is a cost that should be considered in many AIS tasks?

• A) Producing financial statements more quickly.
• B) Basing decisions on more accurate information.
• C) Considering the effects of decisions on human behavior.
• D) Memorizing the rules for preparing financial statements.

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Definitions:

Socioeconomic Model

The belief that business, as part of its role, owes its existence to improving the society in which it operates.

Ethical Dilemmas

Situations where a choice must be made between two conflicting moral principles, making it difficult to decide the right course of action.

U.S. Sentencing Commission

An independent agency of the federal judicial branch in the United States, responsible for developing sentencing policies and guidelines for the federal courts.