Which of the following best defines cost?
A)The value of equities 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 refers to the value of what is given up in exchange for something else, which could be money, time, resources, or any other consideration. It is a measure of the resources that are used up or foregone to achieve a particular outcome or objective. Options A and B are incorrect as they refer to the value of equities and the received item, respectively, which are not the same as cost. Option C is close, but it only refers to the expense inflows and not necessarily the value of what is given up.

Which of the Following Best Defines Cost