Identify the accounting information system principle below that applies to each of these situations.
a. Control
b. Compatibility
c. Relevance
d. Flexibility
e. Cost-benefit
_____ 1. Global Company has designed their accounting information system to be adaptable to changes in technology,the business environment,and the needs of decision makers.
_____ 2. Global Company has world-wide operations that must handle several thousand
different products,so the accounting information system is fairly complex,encompassing marketing and manufacturing.
_____ 3. Global Company's accounting information system has policies to ensure that financial statements will be reliable,assets are protected,and relevant laws and regulations are complied with.
_____ 4. Global Company's accounting information system can be improved markedly for a
cost of about $30,000,000.However,the incremental benefits from such improvements are not expected to outweigh this cost.
_____ 5. Global Company has designed their accounting information system so that key managers can obtain the information they need to make decisions relating to new products,sales,and controlling costs.
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