In 2022, Spencer Realty considered conducting a survey of every home to determine which homes may be put on the market within the next year. This information would be included in their financial statements as a predictor of potential future revenue. The cost of the survey would be $2.6 million, and the results would not differentiate potential business for Spencer Realty compared to other realtor companies. If Spencer Realty decided to not conduct the survey, that decision is likely based on which concept?

Cost Constraint is a concept of accounting, which states that the cost of providing information must be measured against the benefits attained or achieved from the use of the same information.

So in this question, If Spencer Realty decides not to conduct the survey, it would be the cost constraint that is restricting them to do it, as it is requiring a huge amount of 2.6 million dollars to do the survey and they know that the results derived from this survey would not differentiate potential business for them as compared to other realtor companies. So they can stop themselves just because of the cost constraint.