That Which We Forgo, or Give Up, When We Make

question 82

Multiple Choice

That which we forgo, or give up, when we make a choice or decision is called

• A) out-of-pocket cost.
• B) marginal cost.
• C) real cost.
• D) opportunity cost.

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Definitions:

Direct Cost

Costs that can be directly attributed to the production of a specific good or service, such as raw materials and labor directly involved in manufacturing.

Indirect Cost

Expenses that are not directly attributable to a specific product or service, often including overhead costs like utilities or rent.

Administrative Office Salaries

The wages and salaries paid to employees who work in administrative roles within an organization.

Direct Costs

Expenses that can be directly traced to the production of specific goods or services, such as raw materials and labor.