Which of the following statements is (are) false?
(1) In general, the term expense is used for managerial purposes, while the term cost refers to external financial reports.
(2) An opportunity cost is the benefit forgone by selecting one alternative over another.
A) Only (1) is false.
B) Only (2) is false.
C) Both of these are false.
D) None of these are false.

Question

Quizplus · Accepted Answer

The term "expense" is typically used in external financial reports, while "cost" is a broader term used in both managerial and financial contexts. Statement (2) is true as it correctly defines opportunity cost.

Which of the Following Statements Is (Are) False