BRIEF EXERCISES cate whether each of the following statements is true or false. E7-1 Indi n designing an accounting system, we need to think about the needs and know edge of both the top managers and various other When the environment changes as a result of technological advances tition, or government regulation, an accounting system does not have to be sufcienly flexible to meet the changes in order to save money I. e en vironment changes as a resul users. t of technological advances, increased compe- 3. In developing an accounting system, cost is relevant. The benefits obtained from the information disseminated must outweigh the cost of providing it