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Management · Q5

Management Accounting

Graduate and Post Graduate · Management · question 5

Q5

An accounting approach, in which expected benefits exceed expected cost is classified as

A.
benefit approach
B.
cost approach
C.
cost-benefit approach
Answer
D.
accounting approach

Answer: Option C

Solution

Answer: Option C
Solution:
An accounting approach, in which expected benefits exceed expected cost is classified as cost-benefit approach. A cost-benefit analysis is a process businesses use to analyze decisions. The business or analyst sums the benefits of a situation or action and then subtracts the costs associated with taking that action.