Primecoat Corporation could disseminate its annual financial statements two days earlier if it shifted substantial human resources from other operations to the annual report project. Management decided the value of the earlier report was not worth the added commitment of resources. The concept demonstrated is:
A) Timeliness.
B) Materiality.
C) Relevance.
D) Cost-effectiveness.

Question

Quizplus · Accepted Answer

The concept demonstrated is cost-effectiveness, as management weighed the cost (commitment of resources) against the benefit (disseminating the annual report two days earlier) and decided that it was not worth it.

Primecoat Corporation Could Disseminate Its Annual Financial Statements Two Days