A Payment for the Use of Any Resource Over and Above

question 275

Multiple Choice

A payment for the use of any resource over and above its opportunity cost is called

• A) accounting profit.
• B) economic profit.
• C) normal cost.
• D) economic rent.

---

Definitions:

R&D Expense

Costs associated with the research and development activities of a company, aimed at the creation of new products or enhancement of existing products.

IFRS

International Financial Reporting Standards; a set of global accounting standards that provide guidance on how to report financial events.

GAAP

GAAP refers to the widely recognized set of accounting norms and guidelines followed in the U.S. for preparing financial statements.

Fair Value

The amount one would obtain from selling an asset or the cost to transfer a liability, in a smooth transaction with market players on the day of valuation.