Question

________ is the value of a benefit where no actual cost is incurred.

• A. Imputed cost
• B. Sunk cost
• C. Out-of-pocket cost
• D. None of these

Answer 1

Answer: (A)

Imputed cost

An imputed cost is an invisible cost which actually not incurred directly. Examples of imputed cost: if an employee is taking vacation, the imputed cost includes the cost of travel, cost of hotel room etc.