Q203
An investment is multiplied to required rate of return to calculate
A.
congruent cost of investment
B.
transfer cost of investment
C.
operating cost of investment
D.
imputed cost of investment
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
An investment is multiplied to required rate of return to calculate imputed cost of investment. An imputed cost is a cost that is incurred by virtue of using an asset instead of investing it or undertaking an alternative course of action. An imputed cost is an invisible cost that is not incurred directly, as opposed to an explicit cost, which is incurred directly.