Explicit Costs

question 34

Multiple Choice

Explicit costs:

• A) Include only payments to labor.
• B) Are the sum of actual monetary payments made for resources used to produce a good.
• C) Include the market value of all resources used to produce a good.
• D) Are the total value of resources used to produce a good but for which no monetary payment is actually made.

Understand the methods for assessing and reporting the effectiveness of CSR and sustainability initiatives.

Understand the concept and significance of consideration in contract law.

Identify what constitutes "something of legally sufficient value" in the context of consideration.

Recognize situations where a preexisting duty affects the validity of consideration.

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Definitions:

Capital Expenditures Budget

A plan for projected expenditures on physical assets that will be used for more than one year, aimed at maintaining or improving the company's operations.

Continuous Budgeting

A process of constantly updating a budget for a set period in the future to reflect changes as they happen.

Safety Stock

Additional inventory held by a company to prevent stockouts, usually due to uncertainties in supply and demand.

Master Budget

A comprehensive financial plan that combines all of the individual budgets related to sales, costs, expenses, assets, and liabilities.