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What is one major criticism of Value Added Statements?
  • a)
    They provide too much information to ordinary employees.
  • b)
    They are standardized across all companies.
  • c)
    They reduce the confidentiality of financial information.
  • d)
    They focus solely on shareholders' benefits.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is one major criticism of Value Added Statements?a)They provide t...
One major criticism is that Value Added Statements can lead to information overload and confusion, especially for ordinary employees who may find it difficult to reconcile with the earnings statement. They are also criticized for lack of standardization and potential additional costs.
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What is one major criticism of Value Added Statements?a)They provide too much information to ordinary employees.b)They are standardized across all companies.c)They reduce the confidentiality of financial information.d)They focus solely on shareholders' benefits.Correct answer is option 'A'. Can you explain this answer?
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