To obtain a slightly more accurate measure of net income,Gabrielli,Inc.,has determined that it must hire two full-time accountants.If it decides against the hiring,it has followed the convention of

Question

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The decision whether or not to hire two full-time accountants is a cost-benefit analysis. By doing so, Gabrielli, Inc., can obtain a slightly more accurate measure of net income. This means that the potential benefits of hiring the accountants outweigh the costs. Therefore, the best choice is cost-benefit (D). The other options (full disclosure, materiality, and comparability) are not relevant to this situation.

To Obtain a Slightly More Accurate Measure of Net Income,Gabrielli,Inc