Which of the following best defines cost?
A) Anything of value that a firm has at its disposal
B) The value of a received item in a monetary exchange
C) The value of expense inflows in an organization
D) The value of what is given up in exchange for something else

Question

Quizplus · Accepted Answer

Cost is the value of what is given up in exchange for something else. It refers to the expenses incurred by an organization in order to produce goods or services. It takes into account all expenses that a company incurs in order to generate revenue, including materials, labor, and overhead costs. Therefore, option D is the best definition of cost.

Which of the Following Best Defines Cost