Final answer:
True: The extent of internal control features must be evaluated based on a cost-benefit analysis, to ensure that the benefits outweigh the costs incurred, similarly to how different crime reduction approaches are analyzed.
Step-by-step explanation:
The extent of internal control features adopted by a company must indeed be evaluated in terms of cost-benefit analysis. This statement is true. Adopting too many control mechanisms can be expensive and labor-intensive, and the additional security provided by these controls may not always justify the added expense. This is similar to evaluating different approaches to crime reduction: each approach has a certain cost and potential benefit that must be weighed. For example, a country may find that investing in early childhood experiences to prevent crime is more cost-effective compared to the costs associated with incarceration.
When a decision has to be made among several options, like the treatment for a person with drug addiction, the cost-benefit analysis involves choosing the option with the highest benefit-cost ratio. It is important to ensure that the benefits to be gained from a decision, such as money, time, experience, or other improvements, outweigh what must be sacrificed, such as money, effort, and other resources. This analysis helps firms to make informed decisions that align with both financial efficiency and strategic objectives.