When One Is Considering Costs of Taking a Trip in Their

question 9

Multiple Choice

When one is considering costs of taking a trip in their car, the average cost per mile includes some items of cost that are not included in the marginal cost of a mile driven.This statement is

• A)Always true
• B)Always false
• C)Sometimes true and sometimes false depending on the circumstances
• D)Absurd because marginal costs do not apply to mileage costs

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Definitions:

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting used in any jurisdiction.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presenting the financial results of its operations.

Journal Entry

A record in accounting that represents a transaction in which there has been a change in the value of the company's assets, liabilities, or equity.