One of the Benefits Claimed for Projects Such as the Olympic

question 27

Essay

One of the benefits claimed for projects such as the Olympic Games is their "economic impact" or the dollar value of direct spending on the games plus indirect spending by people whose incomes result from the original expenditures,the incomes generated by that second round of spending,and so on.Focusing on opportunity cost concepts,explain why these expenditures should be viewed as costs rather than benefits.

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Definitions:

Production

The process of creating goods and services from various resources, including labor, raw materials, and machinery.

Selling Expense Budget

An estimated projection of all costs associated with the selling activities of a business for a specific period.

Variable Expense

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.

Sales Budget

A sales budget estimates the expected sales revenue for a certain period, projecting quantities sold and revenues earned.