When Economists Refer to a Production Cost That Has Already

question 116

Multiple Choice

When economists refer to a production cost that has already been committed and cannot be recovered, they use the term

• A)implicit cost.
• B)explicit cost.
• C)variable cost.
• D)sunk cost.

Compute cost of goods manufactured and cost of goods sold.

Differentiate between financial and managerial accounting.

Distinguish between line and staff departments.

Understand the concept of decision-making in managerial accounting.

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Definitions:

Pollen Counts

The measurement of the number of grains of pollen in a cubic meter of air, used as an indicator of possible allergy symptoms.

With Asthma

A chronic respiratory condition marked by episodes of airway constriction, leading to wheezing, shortness of breath, and coughing.

Lactic Acid

An organic compound produced in muscles during intense activity, often associated with muscle fatigue.

Glycolytic

Relating to or involving the breakdown of glucose by enzymes, producing energy and pyruvic acid.