Which of the following most accurately describes the term cost/benefit analyses? a. considering whether employees should...

Which of the following most accurately describes the term cost/benefit analyses?

a. considering whether employees should be entitled to certain fringe benefits

b. calculating the cost of holding fundraising benefits for charity

c. considering whether the cost of products exceeds the market selling price

d. considering whether the cost of calculating certain types of information provides a commensurate economic benefit

Expert Solution

As the term suggests the cost / benefits analysis is the analysis made by the management to analyse the new proposal or project in terms of economic benefits, this analysis involves the cost incurred and the corresponding benfit of that costs , it may be for actual production related, service related and even information related.

It helps to analyse whether the cost being incurred to get certain information or for proposals are worth and can provide a positive benefits i.e it's benefits should exceeds the costs.

Here the option A, considering whether employee should be entitled to certain fringe benefit is just an case used in cost/ benefits analysis it a an example and part of it but not the cost benefit analysis itself so this option is not correct.

Further the option B and C , calculating the cost of holding fundraising benefits for charity and considering whether cost of products exceeds the market selling price are also the part and example of it and the accurate meaning of it.

Thus the option D considering whether the cost of calculating certain types of information provides a commensurate economic benefit describes this concept

Thus the correct Option is--------D.

ekkarill92 answered 2 years ago

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