The correct answer is C. imputed expenses.
Imputed expenses are expenses that are not actually incurred, but are included in the financial statements for the purpose of making managerial decisions. They are often used to account for the use of resources that are owned by the company, such as the use of company-owned equipment or buildings.
Notional expenses are expenses that are not actually incurred, but are included in the financial statements for the purpose of complying with accounting standards. They are often used to account for the use of resources that are not owned by the company, such as the use of leased equipment or buildings.
Actual expenses are expenses that are actually incurred and are recorded in the financial statements. They are often used to calculate the company’s net income or loss.
None of these is the correct answer because it does not describe imputed expenses.