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

Question

Quizplus · Accepted Answer

This statement accurately describes the cost-benefit approach, which involves weighing the expected costs and benefits of a decision to determine whether or not to pursue it. It is important to invest resources only if the benefits are likely to outweigh the costs. Option B is incorrect because obtaining accurate and reliable data on both costs and benefits can be challenging. Option C is the opposite of the cost-benefit approach, as it suggests prioritizing costs over benefits. Option D is incorrect because a cost-benefit analysis could be useful in deciding whether or not to implement a budget system, as it would involve weighing the expected costs and benefits of doing so.

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