Which of the Following Statements Is True

question 224

Multiple Choice

Which of the following statements is true?

• A)Opportunity cost = explicit cost - implicit cost.
• B)Total cost = fixed cost + implicit cost.
• C)Total cost = fixed cost + variable cost.
• D)Variable cost = wages + salaries + benefits.

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Definitions:

Cost Drivers

Factors that cause a change in the cost of an activity, used in activity-based costing to allocate costs more accurately.

Product Costing Systems

Methods used to assign production costs to products or services, enabling accurate pricing and profitability analysis.

Reciprocal Service

A mutual exchange of services or resources between two parties or departments within an organization.

Mutual Service

A collaborative arrangement where organizations or individuals provide services to each other for mutual benefit, often without monetary exchange.