While Buying Refreshments for an Upcoming Party,you Notice That a Six-Pack

question 170

Multiple Choice

While buying refreshments for an upcoming party,you notice that a six-pack of Americana Beer costs $2 and a six-pack of Bavarian Beer costs $4.You buy the six-pack of Bavarian Beer,although you wonder if maybe two six-packs of Americana Beer would have been a better choice.The opportunity cost of the Bavarian Beer is:

• A)$4.
• B)a six-pack of Americana Beer.
• C)two six-packs of Americana Beer.
• D)$4 and the six-pack of Americana Beer.

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Definitions:

Accounts Payable

Money owed by a company to its creditors for goods and services received but not yet paid for.

Operating Cycle

The period of time it takes for a company to purchase inventory, sell products, and collect cash from customers, indicating the efficiency of a business's operations.

Inventory

Inventory comprises all the goods and materials held by a company for the purpose of resale or incorporation into their product.

Credit Card

A payment card issued by financial institutions that allows cardholders to borrow funds for purchases, subject to repayment with interest.