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

Question

Quizplus · Accepted Answer

The cost-benefit principle states that an activity should only be undertaken if the benefits from it exceed the costs of that activity. This principle is widely recognized and followed in the business world to ensure that resources are allocated efficiently and effectively. Therefore, the statement is true.

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