A Social Audit Is a

question 133

Multiple Choice

A social audit is a

• A) review of the costs of operating a social program.
• B) report of what a business has done and is doing about social issues.
• C) review of a tax statement by the Internal Revenue Service.
• D) review of management's social activity for the year.
• E) report filed by social sector accountants.

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Definitions:

Economic Costs

The total cost of choosing one action over another, including both explicit costs and opportunity costs.

Accounting Costs

Costs that are recognized in the financial statements and involve actual cash flow, such as salaries, rent, and materials.

Implicit Costs

Costs that are not directly paid out or incurred in money but represent the opportunity cost of using resources owned by the firm for its own production instead of renting them out or selling.

Explicit Costs

Direct, out-of-pocket payments made by a business for resources and services used in production.