What Does It Mean If a Person Makes a "Decision

question 91

Multiple Choice

What does it mean if a person makes a "decision at the margin"?

• A) The person compares additional benefits and additional costs when deciding what to do.
• B) The person weighs the good against the bad and then decides what to do.
• C) The person is more likely to say yes than to say no.
• D) The person compares marginal benefits and total costs and then decides what to do.
• E) The person makes a decision based on a condition.

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Definitions:

QuickBooks

An accounting software package developed and marketed by Intuit, aimed primarily at small and medium-sized businesses.

Purchasing Cycle

The sequence of steps or processes involved in the acquisition of goods or services, from the identification of a need, through the procurement process, to the payment of the invoice.

Purchase Order

A formal document issued by a buyer to a seller, detailing the products or services ordered and the agreed-upon prices.

Inventory Account

An account in the general ledger that tracks the value of a company's products that are intended for sale.