A(n)_____ Cost Is a Production Cost Not Paid by a Firm

question 31

Multiple Choice

A(n) _____ cost is a production cost not paid by a firm or its customers,but by members of society.

• A) internal
• B) external
• C) private
• D) extraterritorial

---

Definitions:

Purchase Date

The date on which an asset or security was bought.

Cash Conversion Cycle

A metric that shows the time span between a company’s purchase of inventory and the receipt of cash from accounts receivable.

Average Inventory

An accounting metric that calculates the median value of inventory within a given period, which helps in understanding inventory levels over time.

Accounts Payable

Liabilities or money owed by a company to its creditors for goods and services received but not yet paid for.