- In Economics, we want MR>=MC
- In Financial management, we want NPV>=0
- And in cost management, the tool used is Contribution
The IFRS framework contains a cost benefit analysis for applying IFRS. It states that if the benefits to users does not exceed the cost to preparers, the entity need not use IFRS. The issue here is that the preparer will tend to understate the user's benefits. That is why the independent auditor generally takes the last call on 'such materiality issues'.