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Cost-benefit is not a consideration in development of a cash management system, only safety and liquidity....

Cost-benefit is not a consideration in development of a cash management system, only safety and liquidity. True False

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Answer #1

Cost-benefit is not a consideration in the development of a cash management system, only safety, and liquidity.

The given statement is False.

Cost-benefit is just an exercise to evaluate a planned action by determining what net value it will have for the company. For very large projects with the long-term horizon, it typically fails to effectively take into account important financial concerns like varying cash flows etc. The only purpose of the cost-benefit is to provide a reasonable measure of the cost and benefits to the management.

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