The potential benefit of an adjustment is predicated on its materiality, i.e., its net effect on EP with versus without the adjustment. This effect is reviewed both in terms of the aggregate effect on overall EP, and the incremental impact on EP decision-by-decision.

We look at the potential cost of an adjustment both from the perspective of those administratering the measure, in terms of data availability, and the perspective of the users of the measure, in terms of complexity and ease of communication to internal and external consituencies.

Once the costs and benefits of each potential adjustment has been determined, management would weigh the trade-offs to pare the list of potential adjustments to the best few. Since each additional adjustment adds to overall complexity in a geometric fashion, they should also look at the overall number of adjustments being proposed with a strong bias toward simplicity.