The accounting method that calculates costs solely by adding up what the government pays for inputs to a project and calculates benefits solely by adding up government revenues generated by the project is called the _____ accounting approach.
A) contingent valuation
B) cash flow
C) opportunity cost
D) social discounting

Question

Quizplus · Accepted Answer

The accounting method described in the question is known as cash flow accounting approach. It focuses only on the monetary inflows and outflows of a project and ignores any non-monetary costs and benefits. Alternative methods like contingent valuation, opportunity cost, and social discounting take into account non-monetary factors as well.

The Accounting Method That Calculates Costs Solely by Adding Up