The cost of producing financial information is
A)Always outweighed by the benefits gained
B)Sometimes outweighed by the benefits gained
C)Never outweighed by the benefits gained
D)irrelevant as users will want all the information they can get

Question

Quizplus · Accepted Answer

While financial information can be very beneficial, sometimes the cost of producing the information can be so high that it outweighs the benefits gained. For example, if a company were to produce very detailed financial statements that required a lot of time and resources to prepare, but were only used by a handful of users who did not make important decisions based on the information, the cost could potentially outweigh the benefits.

The Cost of Producing Financial Information Is