In What Sense Is It a Cost That People Must

question 41

Multiple Choice

In what sense is it a cost that people must spend time and resources coping with inflation?

• A) Because the loss of time and resources frustrates people unnecessarily
• B) Because the time and resources could have been used to produce something else instead
• C) Because the time and resources could have been wasted elsewhere
• D) Because the time and resources are a sunk cost
• E) Because the time and resources are insufficient to cope with the problem

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Definitions:

Profit Center

A branch or division of a company that is directly responsible for generating its portion of the organization's overall profit.

Generates Revenue

The process or activities that result in income being brought into a company, such as sales of goods or provision of services.

Incurs Costs

To incur costs means to recognize or accumulate expenses through activities or operations, leading to a reduction in profits.

Dollar Gross Profit

The total monetary gain computed by subtracting the cost of goods sold from the sales revenue of a company.