Assume You Are Viewing a Graph That Compares Costs with the Amount

question 12

Multiple Choice

Assume you are viewing a graph that compares costs with the amount of credit extended. Both the carrying costs and the opportunity costs of credit are depicted. What is the function called that represents the summation of these carrying and opportunity costs?

• A) Opportunity cost curve
• B) Credit extension curve
• C) Credit cost curve
• D) Terms of sale graph
• E) Optimal sales graph

---

Definitions:

Voucher

A written authorization form containing data about a transaction along with proper authorizations for payment, account distributions, and so forth.

Purchase Requisition

A form used within a business by the requesting department asking the purchasing department of the business to buy specific goods.

Cash Payment

Cash Payment involves the transfer of cash from one party to another as a form of settlement of a transaction or an obligation.

Voucher

A document that acts as evidence of a financial transaction, authorizing payment or receipt of money.