Which of the Following Statements About the Cost-Benefit Approach Is

question 64

Multiple Choice

Which of the following statements about the cost-benefit approach is true?

• A) Resources should be spent if the expected costs exceed the expected benefits of the company.
• B) In a cost-benefit analysis, both costs and benefits are not easy to measure.
• C) Resources should be spent if the costs of a decision outweigh the benefits of the decision.
• D) A cost-benefit approach would not be appropriate for a decision to install a budgeting system.

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Definitions:

Adjustments

Entries made in journal accounts at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.