An Explicit Cost Is

question 80

Multiple Choice

An explicit cost is

• A)a nonmonetary opportunity cost.
• B)a cost specifically related to government rules and regulations.
• C)a cost that involves spending money.
• D)a cost unique to corporations.

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Definitions:

Total Debt

The sum of all financial obligations or liabilities held by a business or individual, including short-term and long-term debt.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, representing the fraction of revenue that constitutes profit.

Cash Coverage Ratio

A financial metric that measures a company's ability to pay off its debt obligations with its cash flow, by comparing its operating cash flow to its total debts.

Days' Sales

Days' Sales, often referred to as Days Sales Outstanding (DSO), measures the average number of days it takes a company to collect payment after a sale has been made.