An Item That Is Widely Accepted as Payment for Goods

question 25

Multiple Choice

An item that is widely accepted as payment for goods and services is a

• A)barter exchange.
• B)exchange rate.
• C)trade exchange.
• D)medium of exchange.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Incremental Basis

A method of calculating changes in costs or benefits that result from small variations in the quantity of output or input.

Differential Basis

A method of calculating or analyzing the difference in costs or revenues between two alternative actions.

Sunk Cost

A cost that cannot be changed by any present or future decision.