According to the Cost-Benefit Principle

question 25

Multiple Choice

According to the cost-benefit principle:

• A) the lowest cost activity usually gives the lowest benefit.
• B) a person should always choose the activity with the lowest cost.
• C) a person should always choose the activity with the greatest benefit.
• D) the extra costs and benefits of an activity are more important considerations than the total costs and benefits.

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Definitions:

Fees Earned

Income gained from providing services, reflecting work completed but not necessarily paid for by the client.

Classification

The process of organizing data, objects, or information into categories or groups based on shared characteristics or criteria.

Normal Balance

The side (debit or credit) of an account that is typically increased. For assets and expenses, it's the debit side; for liabilities, equity, and income, it's the credit side.

Office Supplies

Items used in offices for daily operations, such as stationery, paper, and computer supplies.