________ Is Called an Implicit Cost, While ________ Is Called

question 155

Multiple Choice

________ is called an implicit cost, while ________ is called an explicit cost.

• A)An accounting cost; an economic cost
• B)A nonmonetary opportunity cost; a cost that involves spending money
• C)A production cost; a sales cost
• D)An actual cost; a hypothetical cost

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Definitions:

Current Liabilities

Financial obligations of a business that are due and payable within a year.

Collection Process

The method by which a company pursues payment on outstanding invoices from customers, including sending reminders, making calls, or taking legal action.

Credit Standards

The set of criteria that lenders use to determine the creditworthiness of borrowers and the terms under which credit will be extended.

Credit Policy

The guidelines a company follows in determining credit terms for its customers, including terms of payment and credit limits.