The Opportunity Cost of Something Is

question 17

Multiple Choice

The opportunity cost of something is:

• A)greater during periods of rising prices.
• B)equal to the money cost.
• C)less during periods of falling prices.
• D)what is given up to acquire it.

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Definitions:

Variable Overhead

Generic term for the costs of production that fluctuate with the level of output, including expenses like utilities or raw materials.

Direct Labor-Hours

The number of labor hours spent directly on the production of goods or services.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services and are a significant portion of production costs.

Variable Overhead

Costs that fluctuate with the level of production output, including expenses like utilities and raw materials.