A Buying Situation Can Involve Comparing the Costs and Benefits

question 59

Multiple Choice

A buying situation can involve comparing the costs and benefits of substitute items - such as real sugar to the sugar substitute Equal which, although more expensive than sugar, is purchased by many consumers because it contains no calories. This situation involves the consumer considering:

• A)a break-even analysis.
• B)a marginal analysis.
• C)a reference value.
• D)a profit equation.

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Definitions:

Debt Service Funds

Governmental funds used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.

Capital Projects Funds

Funds used by governmental entities to finance the acquisition or construction of major capital facilities.

Pension Trust Fund

A fund established by an employer to facilitate and organize the investment of employees' retirement funds contributed by the employer and employees.

Special Revenue Funds

Funds used by governments to account for revenue from specific sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.