Question

The qualitative characteristic that says the value of information should exceed the cost of preparing it...

The qualitative characteristic that says the value of information should exceed the cost of preparing it is called

Group of answer choices

relevance.

verifiability.

understandability.

cost constraint.

Business   Accounting   
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Homework Answers

Answer #1

Relevance: Information is relevant for the purpose required.

Verifiability: Information is reliable i.e., truthfulness of the information

Understandability: Information is understandable to the user.

Cost Constraint: The value i.e., the benefit from the information is greater than the cost of information.

Hence the qualitative characteristic that says the value of information should exceed the cost of preparing it is called Cost Constraint

Correct Answer: Cost Constraint

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