The cost-benefit constraint prescribes that only information with benefits of disclosure less than the costs of providing it, need be disclosed.

Question

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The cost-benefit constraint prescribes that only information with benefits of disclosure greater than or equal to the costs of providing it should be disclosed. This is because disclosing information that has lower benefits than costs would result in a net loss for the company.

The Cost-Benefit Constraint Prescribes That Only Information with Benefits of Disclosure