It Is Inappropriate to Assume That Accounting Costs Are Equal

question 68

Multiple Choice

It is inappropriate to assume that accounting costs are equal to total costs of a particular item or activity because

• A) accounting costs do not necessarily include the forgone benefits of the next-best alternative.
• B) total costs are expressed only in monetary terms.
• C) accounting costs include opportunity costs.
• D) accounting costs overstate the tradeoffs involved.
• E) total costs do not include direct, out-of-pocket expenses.

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Definitions:

Sex Selection

The practice of using medical techniques to choose the sex of offspring, often raising ethical and social concerns.

Incest Potential

The possibility of sexual relations between closely related individuals, which is often legally and socially prohibited.

Single Mothers

Women who are raising their child or children without the involvement of the child's father, either by choice or circumstance.

Income

The financial return or earnings from work, investments, or property, typically measured on an annual basis.