Advertising Expenses Would Be Considered Which Element of the Value

question 20

Multiple Choice

Advertising expenses would be considered which element of the value chain?

• A)Customer service
• B)Marketing
• C)Production
• D)Research and development

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between options.

Capital

Economic resources that are used to create goods and services, such as buildings, machinery, and equipment.

Accounting Profit

Total revenue minus total explicit cost

Economic Profit

The distinction in the amount between total sales and all costs, inclusive of apparent and implied expenses.