QQuestionBusiness Law
QuestionBusiness Law
What does it mean if information is cost effective?
Information should have the ability to have an impact on the decisions of users
The benefits of providing financial information exceed the costs of doing so
Information should accurately reflect the economic condition of the business
Information must be able to be understood by users
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Answer
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Step 1: Understand the concept of cost-effectiveness
Cost-effectiveness refers to the relationship between the benefits and costs of a particular action or decision. In the context of information, it means that the value or usefulness of the information should exceed the cost of acquiring, processing, and distributing it.
Step 2: Analyze the statement "Information is cost-effective"
The statement "Information is cost-effective" implies that the information being referred to provides benefits that are greater than the costs associated with it. In other words, the information is valuable enough to justify the resources expended to obtain it.
Final Answer
Information is considered cost-effective when the benefits of providing it exceed the costs associated with acquiring, processing, and distributing it. Factors to consider when evaluating cost-effectiveness include the potential benefits of the information, such as improved decision-making, increased efficiency, and competitive advantage, as well as the costs of acquisition, processing, and distribution.
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