The cost-benefit constraint recognizes that:
A) the costs of providing information to users should be less than the benefits.
B) the expenses of an operation should be less than the revenues.
C) the expenses and revenues associated with a transaction should be reported at the same time.
D) all the information that is possible to be gathered should be reported.

Question

Quizplus · Accepted Answer

The cost-benefit constraint ensures that the costs of providing information to users should be less than the benefits they receive from it. This means that companies should only provide information to the extent that the benefits of doing so outweigh the costs. This constraint helps ensure that companies are not burdened with excessive reporting requirements that may not provide any real value to users of financial information.

The Cost-Benefit Constraint Recognizes That