Performing Cost/benefit Analysis Involves

question 17

Multiple Choice

Performing cost/benefit analysis involves:

• A) quantifying the costs and benefits associated with a given activity and deeming the activity worthwhile only if the costs exceed the benefits.
• B) quantifying the costs and benefits associated with a given activity and deeming the activity worthwhile only if the benefits exceed the costs.
• C) only those activities that provide an explicit monetary loss and gain.
• D) only those activities that provide an implicit monetary loss and gain.

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Definitions:

Declaration

An official statement or announcement made by a person or an organization.

Convertible Securities

Financial instruments, such as bonds or preferred shares, that can be converted into a specified amount of another asset, typically shares of the issuing company.

Diluted Earnings

Net income available to common shareholders, adjusted for the effects of all potential dilutive securities.

Ranking

Ordering or grading things or individuals in terms of quality, importance, or performance.