Business Function Costs Are ________

question 185

Multiple Choice

Business function costs are ________.

• A) the sum of all fixed costs, sunk costs, and opportunity costs in a particular business function of the value chain
• B) the sum of all variable and fixed costs in a particular business function of the value chain
• C) the sum of all variable and fixed costs in all business functions of the value chain
• D) the sum of all fixed costs, sunk costs, and opportunity costs in all business functions of the value chain

---

Definitions:

Premium Wheat

Refers to wheat that is of higher quality than standard wheat, often meeting certain criteria for size, condition, and protein content, and therefore commands a higher price in the market.

Cost Recovery Method

An accounting technique used when the future collectibility of revenue is uncertain, recognizing revenue only when cash payments are received.

Revenue Recognition

An accounting guideline that specifies when revenue should be recognized and recorded.

Installment Sales Method

An accounting method used to recognize revenue from sales when payments are received in installments over a period of time, instead of at the point of sale.