The Concept of ________ Is That the Economic Cost of Using

question 98

Multiple Choice

The concept of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.

• A)marginal cost
• B)opportunity cost
• C)normative economics
• D)entrepreneurship

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Definitions:

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, utilizing a special post office box to speed up the collection of checks.

Collection Time

The average period it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Money Market Securities

Short-term financial instruments that are typically liquid and considered safe, such as Treasury bills and certificates of deposit.

Average Daily Float

The average amount of un-cleared or in-process checks and electronic payments that are recorded in a company’s accounting system at any given time.