Question

Costs can be defined as total payments made to workers, landowners, and capital suppliers less payments to the entrepreneur for organizing and combining the other resources used to produce a good.
(A) True
(B) False

Answer 1

Answer: FALSE

Explanation: In accounting,cost is the total amount of resources that are used by an organisation for the production of goods or service that they offer in the market for sale.

In the given case, payment to capital suppliers and deduction of payments  to the entrepreneur are not considered while computing cost.

Hence, the above statement is false.