At the most basic level, a cost may be deﬁned as a(n):
A)long-term asset.
B)data classiﬁed for a speciﬁc application.
C)sacriﬁce made to achieve a particular purpose.
D)useful information for planning.
E)suggestion for improvement.

Question

Quizplus · Accepted Answer

A cost represents a sacrifice or an expense made to achieve a particular purpose, such as producing goods or providing services. It is not a long-term asset or a data classification, although it may provide useful information for planning or suggest areas for improvement.

At the Most Basic Level, a Cost May Be Deﬁned