Which of the following statements about the cost-benefit approach is TRUE?
A)Resources should be spent if the costs of a decision outweigh the benefits of the decision.
B)In a cost-benefit analysis,both costs and benefits are easy to obtain.
C)Resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources.
D)A cost-benefit approach would not be appropriate for a decision to install a budget system or not.

Question

Quizplus · Accepted Answer

The cost-benefit approach involves analyzing the expected costs and benefits of a decision, and resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources. Option A is incorrect as resources should be spent if the benefits outweigh the costs, not the other way around. Option B is also incorrect as obtaining accurate cost and benefit figures can be challenging. Option D is incorrect because a cost-benefit analysis can be helpful in deciding whether or not to install a budget system.

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