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:

American Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price before the option's expiration.

Right to Sell

The explicit permission granted to an individual or business entity to sell a particular product or service, often within a specific territory.

Asset

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

American Option

Call or put option that can be exercised on or before the expiration date.