An Optimal Decision Is One That Is Selected Based on an Analysis

question 186

Multiple Choice

An optimal decision is one that is selected based on an analysis of

• A)explicit costs but not implicit costs.
• B)implicit costs but not explicit costs.
• C)both explicit costs and implicit costs.
• D)neither explicit costs nor implicit costs.

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Definitions:

Interest

The cost paid for borrowing money, typically expressed as a percentage of the total borrowed.

JIT Policy

Just-In-Time policy, a strategy where materials are produced or acquired only as needed for use in the production process, reducing inventory levels.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated through a physical count or accounting methods.

Unit Sales

The quantity of items that have been sold within a particular timeframe.