Based on the Matching Principle,all Product Costs End Up in

question 24

Multiple Choice

Based on the matching principle,all product costs end up in

• A)Raw materials Inventory.
• B)Work in Process.
• C)Finished Goods.
• D)Cost of Goods Sold.

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Definitions:

Opportunity Cost

is the loss of potential gain from other alternatives when one alternative is chosen.

Rational Decisions

Choices made by individuals that align with their own self-interest and are based on an evaluation of the costs and benefits of the action.

Marginal Costs

The extra financial burden of generating one additional unit of a good or service.

Marginal Benefits

The incremental satisfaction or advantage obtained from the consumption of an additional unit of a good or service.