Net Benefit Can Be Maximized by Finding the Greatest Difference

question 56

Multiple Choice

Net benefit can be maximized by finding the greatest difference between:

• A) total benefit and total cost.
• B) marginal benefit and marginal cost.
• C) marginal benefit and total cost.
• D) total benefit and marginal cost.

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Definitions:

Expense Account

An account that tracks the costs incurred by a business during its operations.

Accounts Payable

Liabilities owed by a company to its suppliers or creditors for goods and services received that have not yet been paid for.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Permanent Account

An account in the general ledger that carries its ending balance over to the next accounting period, such as assets, liabilities, and equity accounts.