Of the Following Individuals, Who Bears the Highest Opportunity Cost

question 80

Multiple Choice

Of the following individuals, who bears the highest opportunity cost of going to college?

• A)A pro-football player earning $2 million a year
• B)A high school graduate without a job
• C)A high school dropout earning the minimum wage in a fast-food restaurant
• D)A teenager who attends college and also works on campus
• E)A retiree

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Definitions:

FOB Shipping Point

An Incoterm indicating that the buyer assumes ownership and risk for goods at the point of departure from the seller's shipping location.

Credit Memo

A credit memo is a document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller under previous transactions, often due to a return or a mistake.

Periodic Inventory System

An inventory tracking method where physical counts are performed at specific intervals to determine the cost of goods sold and ending inventory.

Cost of Goods Sold

Directly attributable expenses for creating the goods that a company sells, including materials and labor costs.