The costs constraint
A) means that assets and revenues should be estimated at the lower end of their range.
B) means that assets and revenues should be estimated at the higher end of their range.
C) means the value of the information does not cost less than the cost to produce the information.
D) means the information would influence the decisions of a user of the financial information.

Question

Quizplus · Accepted Answer

The costs constraint means that the value of the information provided in financial reporting should outweigh the cost of producing that information. This principle ensures that the financial reporting process is efficient and cost-effective, providing useful information without incurring unnecessary expenses.

The Costs Constraint