The cost-benefit principle prescribes that the benefits from an activity in an accounting information system should outweigh the costs of that activity.

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The cost-benefit principle states that an activity in an accounting information system should only be carried out if the benefits generated from that activity exceed the costs associated with it. This principle is based on the idea of efficiency, where resources should be utilized in the most effective manner possible.

The Cost-Benefit Principle Prescribes That the Benefits from an Activity