Which of the Following Costs Related to a Company Car

question 6

Multiple Choice

Which of the following costs related to a company car would NOT be expensed?

• A) The cost to install an engine with higher horsepower
• B) The cost to change car's oil
• C) The cost to replace a broken windshield
• D) The cost of new tires

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Definitions:

Units of Output

The amount of product that a company produces in a given period.

Workers

Individuals engaged in any form of economic activity to earn a wage or salary, including both skilled and unskilled labor.

Total Cost

The complete cost of production that includes both variable and fixed costs.

Economics

The social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants.