Each of Your Spending and Savings Decisions Should Be Considered

question 16

Multiple Choice

Each of your spending and savings decisions should be considered in light of:

• A) Goals and Debt
• B) Opportunity Cost and Goals
• C) Debt and Cash Flow
• D) Cash Flow and Goals

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Definitions:

Operating Expenses

Costs incurred in the normal operation of a business, excluding the cost of goods sold.

Direct Expenses

Expenses that can be traced directly to a specific department.

Specific Department

A designated segment within an organization focused on a particular area of activity or operations.

Profit Center

A business unit or department which is treated as a separate entity for the purpose of calculating its profitability.