Which statement concerned with establishing the costs and benefits of accounting information is true?
A)It is usually easier to establish the benefits than the costs.
B)It is normally easy to establish both the costs and the benefits.
C)Both the costs and benefits are normally difficult to assess.
D)The costs and benefits should be ignored when deciding on what accounting information should be produced.

Question

Quizplus · Accepted Answer

Assessing the costs and benefits of accounting information is generally a complex process that involves various factors such as the specific needs of stakeholders, the nature of the business, and the resources available to the organization. Thus, it is not usually easy to determine the costs and benefits, and both are important considerations in deciding on what accounting information should be produced. However, even though the process of assessing costs and benefits can be challenging, it is crucial to undertake it to ensure that the benefits outweigh the costs. Therefore, option C is the correct answer. Option D is incorrect because ignoring the costs and benefits is not a prudent approach to decision-making.

Which Statement Concerned with Establishing the Costs and Benefits of Accounting