Which of the following is not a cost of financial reporting?
A) Cost of preparing the annual report.
B) Cost of complying with accounting standards.
C) Cost of preparing the organisation's annual budgets for all departments.
D) Loss of competitive position as a result of the disclosure of financial information outside the business.

Question

Quizplus · Accepted Answer

The cost of preparing the organisation's annual budgets for all departments is not a cost of financial reporting. It is a cost of budgeting and planning, which is a separate process from financial reporting. The other options, such as the cost of preparing the annual report and complying with accounting standards, are directly related to financial reporting. The loss of competitive position as a result of the disclosure of financial information outside the business can also be considered a cost of financial reporting, as it affects the company's reputation and ability to compete in the market.

Which of the Following Is Not a Cost of Financial