______ Is the Cost of Inputs Whose Use Does Not

question 43

Multiple Choice

______ is the cost of inputs whose use does not vary as the firm's output changes.

• A) Sunk cost
• B) Fixed cost
• C) Total cost
• D) Explicit cost

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Definitions:

Supplies

Supplies are consumable items used in the everyday operations of a business, such as office materials, that are not resold to customers.

Open Account

a method of credit where the seller ships goods or provides services to a buyer under an agreement to bill them later or on a recurring basis.

Assets

Resources owned by a business, expected to bring future economic benefits.