Opportunity Cost Is

question 85

Multiple Choice

Opportunity cost is:

• A)about half of the monetary cost of a product.
• B)the dollar payment for a product.
• C)the benefit derived from a product.
• D)the value of the best alternative forgone in making any choice.

Grasp the concept and examples of construct validity.

Recognize the various types of tests and their applicability in assessing cognitive abilities.

Comprehend the principle of concurrent validity and its implication for job performance evaluation.

Understand criterion-related validity and its significance in predicting work behavior.

---

Definitions:

Breakeven Volume

The quantity of products sold or services rendered at which total revenues equal total costs, resulting in no net loss or gain.

Sales Revenues

The income earned by a company from its sales of goods or the provision of services before any costs or expenses are deducted.

Operating Income

Operating income, also known as operating profit or Earnings Before Interest and Taxes (EBIT), is a measure of the profit a company generates from its operations, before subtracting interest expenses and taxes.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.