In developing an accounting system cost effectiveness does not imply that
A) the benefits obtained from the system outweigh the costs.
B) an electronic system must be cheaper than the system it is replacing.
C) the system should be cost effective.
D) the value of an accounting report should be at least equal to the cost of producing it.

Question

Quizplus · Accepted Answer

Cost effectiveness means that the benefits obtained from the system outweigh the costs. It does not necessarily mean that an electronic system must be cheaper than the system it is replacing. It simply means that the system should achieve its goals in a cost-effective manner, regardless of whether it utilizes new technology or not.

In Developing an Accounting System Cost Effectiveness Does Not Imply