A common application of the cost constraint is weighing the factual nature of cost figures versus the relevance of fair value.

Question

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The cost constraint in accounting refers to the idea that the benefits of reporting financial information should outweigh the costs of doing so. It does not directly involve weighing the factual nature of cost figures versus the relevance of fair value, which pertains more to measurement and valuation principles in accounting.

A Common Application of the Cost Constraint Is Weighing the Factual