A Cost That Requires a Future Outlay of Cash,and Is

question 57

Multiple Choice

A cost that requires a future outlay of cash,and is relevant for current and future decision making,is a(n) :

• A)Out-of-pocket cost.
• B)Sunk cost.
• C)Opportunity cost.
• D)Operating cost.
• E)Uncontrollable cost.

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Definitions:

Income

Proceeds that come in, particularly at consistent intervals, from occupational or investment sources.

Utility Function

A mathematical representation that captures the preference ranking of various bundles of goods by an individual, translating these preferences into a level of utility or satisfaction.

Income

Refers to the money received, typically on a regular basis, for work or through investments.

Price

The amount of money required to purchase a good or service.