The Benefit of an Activity Is

question 30

Multiple Choice

The benefit of an activity is

• A) purely objective and measured in dollars.
• B) the gain or pleasure that it brings.
• C) the value of its opportunity cost.
• D) measured by what must be given up to get one more unit of the activity.
• E) not measurable on the margin.

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Definitions:

Financial Statements

Reports that summarize the financial performance and condition of a company, including the balance sheet, income statement, and cash flow statement.

Average cost

The total cost of goods divided by the number of goods, used in inventory valuation and determining profit margins.

Periodic inventory system

A periodic inventory system is a method of inventory valuation where the inventory is updated and cost of goods sold is calculated at the end of a specific accounting period.

Ending inventory

The total value of all the goods still available for sale at the end of an accounting period.