Question

All of the following are problems with traditional accounting information EXCEPT

a. Managers in a JIT setting require immediate information
b. The measurement principle tends to ignore standards other than money
c. Variance analysis may yield insignificant values
d. The overhead component in a manufacturing company is usually very large
e. All of these are problems associated with traditional accounting information

Answer 1

The problem that is NOT associated with traditional accounting information is the overhead component in a manufacturing company being usually large.

Step-by-step explanation:

Traditional accounting information has several problems, but the only option in the given choices that is NOT a problem with traditional accounting information is (d) The overhead component in a manufacturing company is usually very large. This option does not represent a problem with traditional accounting information. On the other hand, the other options are problems associated with traditional accounting information. For example, (a) Managers in a JIT (Just-in-Time) setting require immediate information, which traditional accounting may not be able to provide. (b) The measurement principle in traditional accounting tends to ignore standards other than money, limiting the information provided. (c) Variance analysis may yield insignificant values, making it difficult to assess performance accurately. Therefore, the correct answer is (d) The overhead component in a manufacturing company is usually very large.