Which of the Following Statements Is True? a Cost Is

question 76

Multiple Choice

Which of the following statements is true? A cost is:

• A) always an expense.
• B) always an asset.
• C) can be either an expense or an asset.
• D) always a liability.

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Definitions:

Decreasing-cost Industry

An industry in which the average cost of production decreases as the total volume of production in the industry increases.

LCD Televisions

A type of television using Liquid Crystal Display technology to produce images, known for its thin profile and energy efficiency.

Market Price

The ongoing price level for buying or selling goods or services in a market setting.

Long-run Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of the good that suppliers are willing to produce, taking into account adjustments in all factors of production.