An Estimation Transaction Involves

question 5

Multiple Choice

An estimation transaction involves

• A)a decision by management to estimate an incurred cost
• B)a decision by management to estimate a future price
• C)a decision by management to estimate a future amount
• D)a decision by management to estimate a future profit

---

Definitions:

Quantity Sold

The total number of units of a product or service that have been sold during a specific period of time.

Marginal Costs

The added cost of producing one additional unit of production.

Units Produced

The total number of units of product that a company manufactures over a specified period.

Costs

An economic metric that considers the total expenditure of resources, including money, time, and labor, to achieve a particular goal or produce a good or service.