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The lesson lists Cost Benefit as one of four constraints on accounting choice. Which idea does the Cost Benefit constraint most naturally express?
Answer & Solution
Correct answer: B.
1. The Cost Benefit constraint is one of four constraints in the lesson's framework.
2. It expresses that the cost of providing a disclosure should be justified by the benefits to users.
3. It does not depend on Cost Audit Branch clearance, capital-cost minimisation or cash realisation.
4. The other options misstate constraints that do not exist as such.
_Source: ICSI CS Executive Paper 5 (Corporate and Management Accounting) — Lesson 1 & 2: Introduction to Financial and Corporate Accounting, pp. v–vii and x._
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