Explain What Is Meant by the Cost/benefit Trade-Off Concept in Accounting.A

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The Answer is Gathering and analyzing information takes time and is costly.In accounting you want the benefit derived from using the information to exceed the cost of collecting and processing it.As you collect additional information the additional amount of benefits usually decreases.There may come a point where you have enough information to make a decision without needing to incur additional costs.
Attending university out of town is expensive and normally a four-year commitment.The cost of choosing poorly might be a lost year of university work, or having to pay rent or tuition for a full year even if the student is unhappy and drops out.So the $500 cost to visit the universities seems a reasonable application of the cost/benefit trade-off.It is worth the $500 cost to get the benefit of picking the university the student will be happiest at.

Explain What Is Meant by the Cost/benefit Trade-Off Concept in Accounting.A

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