The Control Principle for Accounting Information Systems Requires That The

question 116

Multiple Choice

The control principle for 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 must have internal controls.
• D) System adapts to changes in the company, business environment, and needs of decision makers.
• E) System conforms to a company's activities, personnel, and structure.

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Definitions:

Skilled Labour

Workers who have specialized training or expertise in a particular field or job.

Sunk Cost

Any cost that has already been incurred and that cannot be changed by any decision made now or in the future.

Obsolete Desk Calculators

Desk calculators that are no longer considered efficient or useful due to advancements in technology or changes in user needs.

Inventory

The total amount of goods a company has in stock, including raw materials, work-in-process, and finished goods.