Payments that a ﬁrm makes to obtain needed resources comprise its
A) costs.
B) proﬁts.
C) capital.
D) revenues.

Question

Quizplus · Accepted Answer

Costs are the payments that a firm makes to obtain needed resources such as raw materials, labor, rent, utilities, and other operating expenses. Profits are revenues minus costs, capital refers to the financial assets held by a company or the money used to fund a business, and revenues are the income earned by a company from its operations.

Payments That a ﬁRm Makes to Obtain Needed Resources Comprise