By Adding Internal Costs to External Costs, We Determine the Total

question 86

Multiple Choice

By adding internal costs to external costs, we determine the total

• A) private cost.
• B) social cost.
• C) psychological cost.
• D) marginal cost.

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Definitions:

Carrying Costs

Expenses incurred by a company for holding inventory over a period of time, including costs associated with warehousing and maintaining goods.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Cash Cycle

The duration between the outlay of cash for purchasing inventory and the receipt of cash from customer sales, indicating liquidity.