Final answer:
The statement calling out that 'A control always eliminates the loss' is not true in cost-benefit analysis, as controls reduce but do not always eliminate risks. The cost-benefit analysis also adheres to the principle of proportionality and considers hidden ongoing costs.
Step-by-step explanation:
The statement that is not true of cost-benefit analysis is: "A control always eliminates the loss." Cost-benefit analysis involves comparing the costs of an action, such as implementing controls, to the benefits these actions provide. It's important to recognize that while controls can reduce the risk of loss, they do not always eliminate it. Organizations aim to spend no more on controls than the value of the asset being protected, adhering to the principle of proportionality where the amount spent on controls should be proportional to the risk. Additionally, while the immediate costs of control are often evident, ongoing costs can sometimes be less obvious and should be taken into account for a thorough analysis.
Cost-benefit analysis is used in various contexts, from business investment decisions and governmental policy proposals to individual choices like voting on community projects. It encompasses both present costs and the present discounted value of future benefits, analyzing whether the economic benefits outweigh the economic costs in areas such as crime reduction, environmental policy, and infrastructure improvements.