When the future benefits of certain expenditures, such as employee training costs, are not possible to determine or measure, accountants often rely upon:

A) Net present value
B) Depreciation
C) Intuition
D) Managerial discretion

Question

17-03-2024
Business

High School

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When the future benefits of certain expenditures, such as employee training costs, are not possible to determine or measure, accountants often rely upon:

A) Net present value
B) Depreciation
C) Intuition
D) Managerial discretion

Answer :

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veeragno420 veeragno420 · Answer 1 · 2025-02-01T08:01:32-05:00

Final answer:

D) Managerial discretion

Accountants frequently resort to managerial judgment when determining or measuring future benefits of expenses like employee training costs that are difficult to precisely ascertain.

Explanation:

When future benefits of expenditures, such as employee training costs, cannot be precisely determined or measured, accountants often rely on managerial discretion.

This allows flexibility in decision-making based on the unique circumstances and insights of managers, considering the potential long-term advantages that may not be easily quantifiable through traditional financial metrics.

Managerial discretion involves using judgment and expertise to weigh the potential benefits against the costs, taking into account various factors like market conditions, organizational goals, and industry trends.

It offers a pragmatic approach to handle situations where objective evaluation is challenging due to uncertain future outcomes, enabling informed and adaptable financial choices that align with the organization's objectives.

Learn more about Managerial discretion:

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When the future benefits of certain expenditures, such as employee training costs, are not possible to determine or measure, accountants often rely upon:A) Net present value B) Depreciation C) Intuition D) Managerial discretion

Answer :

Other Questions

When the future benefits of certain expenditures, such as employee training costs, are not possible to determine or measure, accountants often rely upon:

A) Net present value
B) Depreciation
C) Intuition
D) Managerial discretion