Commercial Applications
Cost means:
- Revenue paid for something
- Price paid for something
- To generate expenses
- Depreciation earned
Answer
Price paid for something
Reason — The textbook explicitly defines cost as "the price paid for something or the sacrifice made to acquire something." For example, if a book is purchased for ₹100, the cost of the book is ₹100. "Revenue paid" is contradictory (revenue is received, not paid), "to generate expenses" is the purpose of cost, not its meaning, and "depreciation earned" is meaningless (depreciation is incurred, not earned).
Related Questions
Fixed cost is a cost which remains same at ……………
- All levels of output
- Even zero level of output
- Both (A) and (B)
- Neither (A) nor (B)
Direct cost increases when ……………
- Sales price of product increases
- Cost of raw material increases
- Tax increases
- Subsidy increases
Rent of an office premises is an example of ……………
- Semi-variable Cost
- Semi-fixed Cost
- Fixed Cost
- Variable Cost
Sacrifice made to acquire something is called as ……………
- Cost
- Price
- Revenue
- Expense