The Principle That the Cost of Something Is Equal to What

question 160

Multiple Choice

The principle that the cost of something is equal to what is sacrificed to get it is known as the

• A) marginal principle.
• B) principle of opportunity cost.
• C) principle of diminishing returns.
• D) reality principle.

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Definitions:

Income Statement Expenditures

These are expenses reported on the income statement, including costs associated with the operations of a business, such as cost of goods sold, administrative expenses, and interest on debt.

Plant Assets

Long-term tangible assets used in the operation of a business that are subject to depreciation.

Natural Resources

Naturally occurring materials or commodities valuable to humans, such as water, minerals, and forests.

Plant Assets

Long-term tangible assets used in the operation of a business that are not intended for sale.