Cost Benefit Analysis Is Used to Determine

question 14

Multiple Choice

Cost benefit analysis is used to determine

• A) If an activity will create greater benefits than its cost
• B) The lowest cost approach to achieving a goal
• C) Whether an existing activity is running according to plan and/or achieving the desired goals
• D) Whether a capital investment will generate more revenue than its cost

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Definitions:

Tax Standpoint

A perspective or consideration related to tax implications, obligations, or benefits in financial planning and decision making.

Net Assets

The difference between total assets and total liabilities, representing the owner's or shareholders' equity in a company.

Ownership

The legal right of possessing, using, and disposing of something, especially property or goods.

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as electing directors and approving major company decisions.