The Cost-Effectiveness Constraint Requires That Standard Setting Bodies Choose Rules

question 14

Multiple Choice

The cost-effectiveness constraint requires that standard setting bodies choose rules that

• A)have decision-making benefits that exceed the costs of providing the information.
• B)have revenue generating ability.
• C)have revenue generating ability that exceeds the cost of providing the information.
• D)have costs known to the SEC.
• E)are not costly to implement.

---

Definitions:

Rightfully Revokes Acceptance

Pertains to a scenario where a purchaser legally cancels their acceptance of goods if the goods fail to conform to the contract in a substantial way.

Tender

Tender refers to the offer of payment by one party to another, or the offer to perform a contract obligation, in a manner that meets the terms of the contract.

Conforming Goods

Products that meet the specifications and terms outlined in a contract of sale, matching the buyer's expectations.

Buyer's Disposition

The buyer's intention or decision regarding the management, use, or sale of purchased assets.