________ Are the Costs of Negotiating, Monitoring, and Enforcing a Contract

question 71

Multiple Choice

________ are the costs of negotiating, monitoring, and enforcing a contract.

• A) Opportunity costs
• B) Transaction costs
• C) Indirect costs
• D) Direct costs

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Definitions:

Common Cost

A cost that is not directly attributable to any particular cost object, such as a product, department, or project.

Business Unit

A segment of a company with its distinct operations and management, often treated as an individual entity within the larger corporation for strategic and operational planning.

Avoidable

Something described as avoidable can be prevented or not incurred if certain actions are taken or certain conditions are met.

Performance Report

A document that compares actual results to planned or expected results in areas such as budgeting, operations, and project management.