Which of the Following Terms Refers to an Actual Cost

question 71

Multiple Choice

Which of the following terms refers to an actual cost rather than an estimate?

• A) Budget.
• B) Encumbrance.
• C) Expenditure.
• D) Appropriation.

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Definitions:

Leverage

The ability to use something to maximum advantage, often referring to the strategic use of resources or capital.

Asset Management

The systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner.

Profitability

The financial metric used to gauge the degree to which a company or organization generates profit relative to its revenue and overall costs.

Breakeven Analysis

A financial calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, resulting in no net loss or gain.