Information is cost effective when:
A)The information aids management in controlling costs.
B)The information is based upon historical costs,rather than upon estimated market values.
C)The value of the information exceeds the cost of producing it.
D)The information is generated by a computer based accounting system.

Question

Quizplus · Accepted Answer

Cost effectiveness typically refers to the balance between the value of what is received and the cost incurred to obtain it. In the context of information, it is cost effective when the value it provides exceeds the cost of acquiring or producing it. Choices A and B describe ways in which information can be useful or accurate, but they do not necessarily address cost effectiveness. Choice D implies that technology can play a role in generating information, but does not necessarily make it cost effective.

Information Is Cost Effective When