Question

Indicate whether each of the following statements is true or false.

1. When designing an accounting system, we need to think about the needs and knowledge of both the top managers and various other users.
2. When the environment changes as a result of technological advances, increased competition, or government regulation, an accounting system does not have to be sufficiently flexible to meet the changes in order to save money. 3. In developing an accounting system, cost is relevant. The benefits obtained from the information disseminated must outweigh the cost of providing it.

Answer 1

1. When designing an accounting system, we need to think about the needs and knowledge of both the top managers and various other users.

True, mainly since various people in the organization will be using it and not just the top management.

2. When the environment changes as a result of technological advances, increased competition, or government regulation, an accounting system does not have to be sufficiently flexible to meet the changes in order to save money.

False. An accounting system must be flexible and change with such macro environmental changes. if not, it will be disastrous for the company.

3. In developing an accounting system, cost is relevant. The benefits obtained from the information disseminated must outweigh the cost of providing it.

True. If the cost are more than the benefits and gains the system produce, then the system must be changed to make sure that it is profitable to be used for the business.

Step-by-step explanation: