Which of the Following Is Not a Cost Concept Commonly

question 108

Multiple Choice

Which of the following is not a cost concept commonly used in applying the cost-plus approach to product pricing?

• A) total cost concept
• B) product cost concept
• C) variable cost concept
• D) fixed cost concept

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Definitions:

Accrued Expenses

Expenses incurred but not yet paid in cash or recorded.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a claim on profits in the form of dividends.

Treasury Stock

A corporation’s own stock that has been issued and subsequently reacquired from shareholders by the corporation but not retired.

Investing Activity

Transactions involving the purchase or sale of long-term assets and investments, reflected in the cash flow statement of a company.