A Cost That Involves Spending Money Is

question 125

Multiple Choice

A cost that involves spending money is

• A)an implicit cost.
• B)an explicit cost.
• C)an opportunity cost.
• D)an indirect cost.

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Definitions:

Batch-Level

Activities or costs that are incurred for each batch of products rather than for each unit, affecting multiple units of a product at one time.

Facility Level

Pertains to the activities and costs associated with maintaining a physical establishment or the overall environment where business operations occur.

Sales Price

The amount a customer pays to purchase a good or service.

Low-Volume Products

Products that are manufactured or sold in relatively small quantities compared to other products.