Cost represents the:
A)relationship between price and amortization
B)initial amount the buyer pays for the product
C)amount the buyer pays for a product as it is used over a period of time
D)true value of the product in non-financial terms
E)buyer's contribution to the negotiations

Question

Quizplus · Accepted Answer

Cost refers to the amount that the buyer pays for a product as it is used over a certain period of time, which is typically expressed as an annual figure. This includes expenses related to amortization, maintenance, repairs, and other costs associated with owning or using the product. It is not related to price, the initial amount paid for the product, or the true value of the product in non-financial terms. The buyer's contribution to negotiations may play a role in determining the final price, but it is not directly linked to the concept of cost.

Cost Represents The