The Explicit Cost of Production Is Also Called

question 21

Multiple Choice

The explicit cost of production is also called

• A)variable cost.
• B)accounting cost.
• C)direct cost.
• D)overhead cost.

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Definitions:

Credit

A financial arrangement where a borrower receives something of value with the agreement to repay it later, often including interest.

Normal Balance

The side of an account that is usually positive or increased; for assets and expenses, it's the debit side, for liabilities, equity, and revenue, the credit side.

Account

An individual record within a financial system or ledger that tracks the financial transactions of a specific asset, liability, revenue, expense, or equity component.

Normal Balance

The side (debit or credit) on which increases to the account are recorded, consistent with the accounting equation.