The accountant's cost of producing a bicycle refers to
A)the out-of-pocket payments made to produce the bicycle.
B)the value of the goods that were given up to produce the bicycle.
C)the bicycle's retail price.
D)the marginal cost of the last bicycle produced.

Question

Quizplus · Accepted Answer

The accountant's cost of producing a bicycle refers to the out-of-pocket payments made to produce the bicycle, such as the cost of materials, labor, and other direct expenses. It does not include the value of goods that were given up or opportunity costs, which are considered in economic costs. The retail price of the bicycle is determined by various factors such as demand, supply, competition, and profit margin, and is not the same as the accountant's cost. The marginal cost of the last bicycle produced refers to the additional cost incurred in producing one more unit, which is not the same as the total cost or accountant's cost of production.

The Accountant's Cost of Producing a Bicycle Refers to