Which of the Following Is NOT a Problem with Using

question 3

Multiple Choice

Which of the following is NOT a problem with using cost,revenues or profits as performance measures?

• A)​It is difficult to attribute costs to various functional units
• B)Cost and profit information could be hidden or manipulated​
• C)They are difficult to compare with other firms​
• D)Weaknesses in functional areas are not identified​

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Definitions:

Net Price Method

An accounting method where discounts are not recorded in the accounting records; instead, purchases are recorded at the net purchase price.

Exchange Rates

The price of one country's currency in terms of another currency, which determines how much foreign currency one can buy with a unit of domestic currency.

Euros

The euro is the official currency of 19 of the 27 European Union countries, which together comprise the Eurozone.

Cash Receipt

The collection of money (currency, checks, electronic transfers) by a business or individual, typically documented for accounting purposes.