In terms of using accounting data to build an effective management control system,what is the nirvana fallacy?
A)It is the tendency to use market-based transfer prices.
B)It is the system of using accounting data for both decision management and decision control.
C)It is the tendency to use cost centers rather than profit centers as the core of business structure.
D)It is the belief that a perfect control system can be invented that will stop all fraud.

Question

Quizplus · Accepted Answer

The nirvana fallacy refers to the belief that there exists a perfect control system that can completely eliminate fraud and ensure flawless decision-making. This belief is unrealistic as human error and unforeseen circumstances can always arise. Therefore, striving for total perfection in management control system design is not practical.

In Terms of Using Accounting Data to Build an Effective