Which of the Following Costs Are Caused by the Firm

question 79

Multiple Choice

Which of the following costs are caused by the firm but are incurred and paid for by parties outside the firm?

• A)realized external failure costs
• B)unrealized external failure costs
• C)realized internal failure costs
• D)unrealized internal failure costs

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Definitions:

Actual Cost

The actual expenditure incurred on goods or services, including all amounts spent to acquire them, minus any discounts or rebates.

Cash-Equivalent Amount

The value of an asset that can easily be converted into a known amount of cash within a short period.

Fraud Triangle

A model explaining the factors that cause an individual to commit fraud, including pressure, opportunity, and rationalization.

Opportunity

A set of circumstances that makes it possible to do something, especially in terms of making business decisions or investments that could lead to profit.