The test to determine whether an item of accounting information is worthwhile collecting is:
A) cost test.
B) validation test.
C) cost-benefit test.
D) worthwhile test.

Question

Quizplus · Accepted Answer

The cost-benefit test evaluates whether the benefits of collecting and using the information outweigh the costs of doing so. This is a standard test used in decision-making, and it is particularly relevant in accounting, where data can be costly to collect and process. Therefore, option C is the most appropriate test to use for assessing the worthiness of accounting information.

The Test to Determine Whether an Item of Accounting Information