What Is the Opportunity Cost of Taking an Exam

question 143

Multiple Choice

What is the opportunity cost of taking an exam?

• A) all of the things that someone could have done by not studying
• B) each of the questions that someone misses on the exam
• C) the highest valued alternative that someone gave up to prepare for and attend the exam
• D) the money someone spent purchasing the textbook and the other materials with which he or she studies
• E) the money someone spent on tuition

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Definitions:

LIFO

Last In, First Out, an inventory costing method where the last items added to inventory are the first to be used or sold.

FIFO

"First In, First Out," an inventory valuation method where the cost of the earliest goods purchased or produced are the first to be charged against income when those goods are sold.

Lower-Of-Cost-Or-Market

A conservative approach to valuing and reporting assets, where the value reported is the lower of either the cost to buy or produce the asset, or its market value.

Specific Identification

An inventory costing method where the costs associated with individual units of inventory are tracked specifically.