Comparative Advantage Is Based on Opportunity Costs

question 153

True/False

Comparative advantage is based on opportunity costs.

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Definitions:

Purchase Discounts Lost

The additional expense a company incurs when it fails to take advantage of discounts offered by suppliers for early payment.

Voucher Register

A voucher register is a record keeping system where vouchers are indexed and stored, detailing the payment of a transaction.

Vouchers Payable

A liability account that records the obligation to pay for goods or services that have been received, but not yet paid for.

Purchases

Transactions involving the buying of goods and services for business operations or resale.