An Optimal Decision Is One That Is Selected Based on an Analysis

question 186

Multiple Choice

An optimal decision is one that is selected based on an analysis of

• A)explicit costs but not implicit costs.
• B)implicit costs but not explicit costs.
• C)both explicit costs and implicit costs.
• D)neither explicit costs nor implicit costs.

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Definitions:

Cash Dividends

Cash Dividends are payments made by a corporation to its shareholders, usually as a distribution of profits.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or the wear and tear over time.

Long-Term Debt

Loans and financial obligations lasting more than one year, used to finance a company's operations or expansions.

Direct Approach

A method in financial accounting that involves reporting major classes of gross cash receipts and payments, providing a clear view of a company's cash flow.