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Identify the Accounting Information System Principle Below That Applies to Each

Question 41

Short Answer

Identify the accounting information system principle below that applies to each of these situations:
A. Flexibility
B. Compatibility
C. Control
D. Cost-benefit
E. Relevance
\underline{\quad\quad\quad\quad\quad} 1. Global Company has designed its accounting information system so that key managers can obtain the information they need to make decisions relating to new products, sales, and controlling costs
\underline{\quad\quad\quad\quad\quad} 2. Global Company's accounting information system has policies to ensure that financial statements are reliable, assets are protected, and relevant laws and regulations are complied with.
\underline{\quad\quad\quad\quad\quad} 3. Global Company's accounting information system can be improved markedly for a cost of about $30,000,000 \$ 30,000,000 . However, the incremental benefits from such improvements are not expected to outweigh this cost.
\underline{\quad\quad\quad\quad\quad} 4. Global Company has worldwide operations that must handle several thousand different products, so the accounting information system is fairly complex, encompassing marketing and manufacturing.
\underline{\quad\quad\quad\quad\quad} 5. Global Company has designed its accounting information system to be adaptable to changes in technology, the business environment, and the needs of decision makers

Correct Answer:

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(1)E; (2)C...

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