Question
Is the primary criterion for choosing among alternative accounting approaches. In a company, there is a direct relationship between the amount of time and the
Is the primary criterion for choosing among alternative accounting approaches. In a company, there is a direct relationship between the amount of time and the funds management is willing to spend on cost analysis and the degree of reliability desired. If a company wants detailed records with a high degree of accuracy, managers should provide additional time and money for compiling and maintaining cost information. Managers should only use cost analysis and control techniques when anticipated benefits in helping achieve management goals exceed the cost.
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