In traditional firms,information reporting
A) provides financially oriented information relating to operations
B) presents detailed information about activities
C) shows the allocation of costs first to activities and then to cost objects
D) identifies nonessential activities

Question

Quizplus · Accepted Answer

Traditional firms typically focus on financial information reporting that relates to their operations. This includes information about revenue, expenses, assets, liabilities, and profits. Such information is typically reported in financial statements such as balance sheets, income statements, and cash flow statements.

B, C, and D are incorrect because they describe more modern, activity-based approaches to information reporting that are not typical of traditional firms. These approaches focus on detailed information about activities, cost allocation to activities and cost objects, and identifying nonessential activities to improve efficiency and reduce costs.

In Traditional Firms,information Reporting