Which of the Following Terms Describes a Cost That Does

question 64

Multiple Choice

Which of the following terms describes a cost that does not relate directly to a cost object?

• A)outlay cost.
• B)direct cost.
• C)indirect cost.
• D)opportunity cost.

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Definitions:

GDP

The Gross Domestic Product measures the overall market or financial worth of every completed good and service produced within a country's borders in a set period.

Depreciation

The process by which capital assets decrease in value over time due to wear and tear or obsolescence.

Price Level

The mean cost across the full breadth of goods and services currently produced in the economy.

Production

The process of creating goods or services by combining labor, capital, and natural resources.