Which of the Following Is Best Defined as a Cost

question 34

Multiple Choice

Which of the following is best defined as a cost that changes in totalas the level of activity changes?

• A)an opportunity cost
• B)a fixed cost
• C)a variable cost
• D)a cost object

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Definitions:

Capital Goods

Long-lasting goods acquired by businesses to produce goods or services and not intended for immediate sale.

Savings Market

The financial market where savings are channeled from individuals or entities with surplus funds to those who need funds for investment.

Investment

The allocation of resources, such as capital or time, in the expectation of generating an income or profit.

Certificate Of Investment

A financial document representing a deposit with a specified interest rate and maturity date, often issued by banks.