In Principle,a Cost Is

question 20

Multiple Choice

In principle,a cost is

• A)a sacrifice of resources.
• B)something used up to produce revenues in a particular accounting period.
• C)only comprised of direct material and direct labor.
• D)something measured in conformity with generally accepted accounting principles.

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Definitions:

Book Value

The value of an asset as it appears on a balance sheet, calculated by subtracting any depreciation, amortization, or impairment costs from its original cost.

Fair Value

The estimated market value of an asset or liability based on current market conditions.

Partner's Investment

The total capital contributed to a partnership by its members, either in cash, property, or services.

Income Ratio

A financial metric that compares different streams of income to one another or to total income, often used in profitability analysis.