Question

How can accounting minimize company losses? Select one: a. Accounting can predict the future with certainty. b. Accounting can show managers information that can help minimize losses. c. Accounting can demonstrate companies' exact total expenses for the next year.

Answer 1

Answer:

b. Accounting can show managers information that can help minimize losses.

Explanation:

Accounting can proffer reasonable assistance and guidance in minimizing company losses, not because Accounting can predict the future with certainty or that it can demonstrate companies' exact total expenses for the next year but because it can show managers information that can help minimize losses.

Accounting information are invaluable to achieving profitability and cost reduction for any organisation because through the financial statements areas and categories of costs are revealed and managers can now see which costs to reduce through increased operational efficiency in order to increase profitability and minimize losses

Another area through which accounting information can help minimize losses is through budgets. Budgets present a picture of the future expenses and can trigger a proactive approach to cost reduction and loss minimization.