Regarding the Cost-Benefit Concept,which of the Following Statements Is True

question 57

Multiple Choice

Regarding the cost-benefit concept,which of the following statements is true?

• A)Every control procedure that offers benefits to a company should be implemented into the company's system
• B)An optimal internal control package is developed for a company's system by implementing a standardized package of control procedures
• C)A control procedure is considered cost effective if it can be determined that the cost of operating the procedure will be lower in the current period than in the previous period
• D)A control procedure is considered cost effective when its anticipated benefits exceed its anticipated costs

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Definitions:

Money Supply

The sum of financial resources accessible within an economy at a given moment, encompassing cash, coins, and amounts present in both checking and savings accounts.

Government Purchases

Expenditures made by the government for goods and services that directly satisfy the needs of the community or help in the production of further goods.

Taxes

Mandatory monetary fees or different forms of charges levied on taxpayers by government entities with the purpose of financing government operations and a range of public spending.

Fiscal Policy

Government adjustments to its spending levels and tax rates to monitor and influence a nation’s economy.