The Relevant Cost in Economic Decision-Making Is the Opportunity Cost

question 17

True/False

The relevant cost in economic decision-making is the opportunity cost of the resources rather than the outlay of funds required to obtain the resources.

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Definitions:

Sundry Accounts Column

A column in financial records used for recording miscellaneous transactions that are not frequent or significant enough to warrant their own dedicated account.

Cash Receipts Journal

A dedicated financial journal that tracks all cash inflows to a business, detailing the source and amount of cash received.

Cash Sales

Transactions where payment is made in cash at the time of the sale.

Cash from Sale

The cash received from selling goods or services.