Regarding the cost-benefit concept, which of the following statements is true?
A)Every control procedure that offers benefits to a company should be implemented into the company's system
B)An optimal internal control package is developed for a company's system by implementing a standardized package of control procedures
C)A control procedure is considered cost effective if it can be determined that the cost of operating the procedure will be cheaper in the current period compared to the previous period
D)A control procedure is considered cost effective when its anticipated benefits exceed its anticipated costs

Question

Quizplus · Accepted Answer

A control procedure is deemed cost effective when the expected benefits from implementing the procedure outweigh the anticipated costs associated with it. This principle ensures that resources are allocated efficiently, enhancing the overall value and effectiveness of the control system within an organization.

Regarding the Cost-Benefit Concept, Which of the Following Statements Is