Which of These Is a Defence of Current Cost Accounting

question 32

Multiple Choice

Which of these is a defence of current cost accounting?

• A)It is the most objective of the proposed accounting methods
• B)Relevant current events of the accounting period should be accounted for to maintain the usefulness of accounting information for decision-making
• C)It specifically recognises future technological changes in profit determination
• D)All of the above are defences

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Definitions:

Annually Balancing

The process of adjusting or reconciling financial accounts or budgets to match or balance over a one-year period.

Cyclically Balanced Budget

A fiscal strategy where the government aims to balance its budget over the complete economic cycle, accumulating surpluses in boom periods and deficits during recessions.

Budget Deficits

A financial situation where a government's expenditures surpass its revenues.

Budget Surpluses

A situation where a government's revenue exceeds its expenditures over a specific period, indicating financial health.