The costs of production include:
A) the costs that appear on the income statements.
B) the opportunity costs foregone by producing a given product.
C) accounting costs.
D) accounting costs and opportunity costs.

Question

Quizplus · Accepted Answer

The costs of production include both accounting costs (which appear on the income statement) as well as opportunity costs, which represent the foregone benefits of choosing one production option over another. Both of these types of costs are important for businesses to consider when making decisions about production levels and pricing strategies.

The Costs of Production Include