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BENEFIT THEORY: CONCEPT USEFULNESS AND IMPORTANCE

Azeez Oyebanji Abiola, Igbekoyi Olusola Esther, Adeyemo Foluke Helen, Akinradewo Toyosi Ruth.

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Abstract

This research article aims to conduct a comprehensive review of the theoretical underpinnings and empirical findings concerning the benefit theory in accounting. Through an extensive literature survey, it seeks to delve into the core concepts, diverse perspectives, challenges, and pertinent issues associated with the benefit theory. The study explores how individuals and organizations evaluate the advantages and drawbacks of different actions to make economically rational decisions. In the context of accounting, the benefit theory serves as a guiding principle for recognizing, quantifying, and disclosing financial information with the objective of maximizing advantages while minimizing costs. This research delves into the fundamental principles, practical applications, obstacles, and ramifications of the benefit theory within accounting practices. It underscores the significance of aligning accounting strategies with the aim of optimizing economic results and generating value for stakeholders. Furthermore, the article discusses how the benefit theory contributes to addressing ethical dilemmas, managing risks, and shaping strategic decision-making within the accounting domain. By shedding light on these aspects, this literature review aims to provide valuable insights for practitioners and researchers, enabling a deeper understanding, analysis, and mitigation of challenges associated with the benefit theory.

Keywords: Benefit theory, benefit theory in accounting, cost benefit analysis, decision making, strategic planning, investment analysis.