The Amount of Money That a Wheat Farmer Could Have

question 465

Multiple Choice

The amount of money that a wheat farmer could have earned if he had planted barley instead of wheat is

• A)an explicit cost.
• B)an accounting cost
• C)an implicit cost.
• D)forgone accounting profit.

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Definitions:

Benchmark

A standard or point of reference against which things may be compared or assessed.

Polluter Pays Principle

An environmental policy principle which states that those who produce pollution should bear the costs of managing it to prevent damage to human health or the environment.

Sustainability Perspective

Viewing decisions and actions in terms of their long-term impact on environmental, social, and economic sustainability.

Inventory

The total quantity of goods that a company has in stock, including raw materials, work-in-progress, and finished goods, used to meet customer demand.