Business Costs Quiz

In accounting, what are costs?

The amount of money expended to acquire something

The value of the best alternative that was not chosen

The mark-up for profit over the cost of production

The monetary value of expenditures for supplies, services, labor, products, equipment and other items purchased for use by a business (correct)

What is opportunity cost in economics?

The amount denoted on invoices as the price and recorded in bookkeeping records

The value of the best alternative that was not chosen in order to pursue the current endeavor (correct)

The metric used in the standard modeling paradigm applied to economic processes

The sum of the cost of production as incurred by the original producer

What is the acquisition cost in business accounting?

The mark-up for profit over the cost of production

The value of the best alternative that was not chosen in order to pursue the current endeavor

The amount of money expended to acquire something (correct)

The sum of the cost of production as incurred by the original producer

What does cost represent in the field of economics?

A metric that is totaling up as a result of a process or as a differential for the result of a decision Signup and view all the answers

What is the opportunity cost also known as in economics?

Economic cost Signup and view all the answers

Explain the concept of opportunity cost in economics.

Opportunity cost, also referred to as economic cost, is the value of the best alternative that was not chosen in order to pursue the current endeavor. Signup and view all the answers

What are the types of accounting costs?

In accounting, costs can include the monetary value of expenditures for supplies, services, labor, products, equipment, and other items purchased for use by a business or accounting entity. Opportunity cost is also considered as a type of accounting cost. Signup and view all the answers

How is cost defined in business and acquisition?

In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. This includes the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Signup and view all the answers

What is the role of cost in the standard modeling paradigm applied to economic processes?

Cost is a metric used in the standard modeling paradigm applied to economic processes. It is a result of a process or as a differential for the result of a decision. Signup and view all the answers

How are costs described in accounting based on their timing or applicability?

Costs in accounting are often further described based on their timing or their applicability, including their classification as expenses or asset cost basis. Signup and view all the answers