Four Cost Concepts Are Important in Pricing Decisions: Total Cost,fixed

question 247

Multiple Choice

Four cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,and __________.

• A)dividend cost
• B)liquidity cost
• C)discretionary cost
• D)unit variable cost
• E)elastic cost

---

Definitions:

Uncollectible Account

Refers to receivables that a company has deemed impossible to collect, recognizing it as a bad debt expense.

Repayment of Loan

The process of paying back borrowed money to the lender, typically involving periodic payments of principal and interest over a set term.

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Accounts Payable

Liabilities of a business that are due to creditors within a short period of time, usually for the purchase of goods and services.