Which of the Following Statements Is True of Costs Associated

question 132

Multiple Choice

Which of the following statements is true of costs associated with goods for sale?

• A) Appraisal costs is a subcategory of shrinkage costs.
• B) Special processing costs are always part of purchasing costs.
• C) Opportunity costs are not recorded in the accounting system.
• D) Stockout costs are costs that arise when a company runs out of a particular item for which there is no customer demand.

---

Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a good or service.

Additional Unit

Pertains to an extra quantity or unit added to existing quantities, often analyzed in economic contexts like production and consumption.

Purely Competitive Conditions

describe a market structure characterized by many buyers and sellers where no single participant has the power to influence market prices significantly.

Cost Producing

The total expenses incurred in manufacturing a product or delivering a service.