Answer
1.The cost in the situation relates to the resources necessary for managerial expertise. In contrast, the benefit comprises satisfactory information vis-à-vis competitors that could be exploited during the formulation of business strategy.
2.The cost encompasses adverse implications on the competitive edge of an entity. The benefit includes the provision of full disclosures to users.
3.The cost consists of resources employed in providing financial statements that are already forecasted. The benefit includes the delivery of comprehensible information to users that is ready for processing.
4.The cost includes the resources incurred to gather information to be incorporated in financial reports. Benefits include providing comprehensive information in the reports.
5.The cost comprises the omission of material misstatements and the prospect of failing to observe accounting standards. The benefits include a compilation of satisfactory statements.
6.The cost includes the preparation of information that is proactive and forward-looking. The benefits include crafting stratagems to deal with emergencies such as potential litigations.
Work Step by Step
N/A
