Which of the Following Statements Is True of Cost

question 57

Multiple Choice

Which of the following statements is true of cost?

• A) Cost is the difference between gross margin and operating expenses.
• B) Cost and price are always same for the owner of a company.
• C) Cost is a dollar measure of the resources used to achieve a given benefit.
• D) Cost is the revenue per unit.

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Definitions:

Expansionary Fiscal Policy

Government policy aimed at increasing economic activity through higher spending or lower taxes.

Deficit Reduction Packages

Sets of policy measures aimed at reducing government budget deficits through spending cuts, tax increases, or a combination of both.

Budget Act

Legislation outlining how the government will manage its finances, including spending and revenue collection.

Fiscal Policy

Economic strategies involving tax and expenditure decisions by the government to affect the national economy.