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Term: Accounting -> Cost-benefit
Term:

Cost-benefit

Definition:

Calculating not only the financial costs of a project, but also the cost of the effects it will have from a social point of view. This is not easy to do since it requires valuations of intangible items like the cost of job losses or the effects on the environment. Genetically modified crops are a good example of where cost-benefits would be calculated - and also impossible to answer with any degree of certainty!

Related terms:

Regulatory Accounting Principles

Contra Account
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