Cost Benefit Principle definition – What is the Cost Benefit Principle?

Accounting Glossary 

Cost benefit principle definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Cost benefit principle can be defined as: Information system principle that prescribes the benefits from an activity in an accounting system to outweigh the costs of the activity. The cost benefit principle should be considered is as part of the decision process for all components of the principles of an accounting system.