The level of detail produced in a project accounting system is proportionate to the overhead cost of running the system.

Question

Quizplus · Accepted Answer

This statement is generally true. The more detailed and comprehensive the project accounting system, the higher the overhead cost of running it will be. This is because maintaining and managing a complex accounting system requires more resources, such as specialized software, training for staff, and additional staff time to input and analyze data. However, there may be exceptions to this rule, depending on the specific circumstances and goals of the project and organization. It's possible to have a relatively simple and cost-effective project accounting system that still provides sufficient detail to meet the organization's reporting and decision-making needs.

The Level of Detail Produced in a Project Accounting System