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

question 117

Multiple Choice

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

• A)Resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources.
• B)In a cost-benefit analysis, both costs and benefits are easy to obtain.
• 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 budget system or not.
• E)The cost-benefit approach is more important than behavioural considerations.

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Definitions:

Price and Profit Maintenance

Practices aimed at keeping prices at a certain level to ensure sustainable profits, often through agreements or monitoring.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified period.

Tariff

A tax imposed on imported goods and services to regulate trade by making imports more expensive than local products.

Total Revenue

The total amount of money received by a company from sales of goods or services, before any expenses are subtracted.