What Is the Opportunity Cost of an Item

question 136

Multiple Choice

What is the opportunity cost of an item?

• A) the number of hours needed to earn money to buy it
• B) what you give up to get that item
• C) usually more than the dollar value of the item
• D) the value of the resources needed to produce the item

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Definitions:

Unrealized Intercompany Profits

Profits arising from transactions between entities within the same group that have not yet been realized by selling the goods or services to an external party.

Cumulative Dividends

Dividends on preferred shares that accumulate and must be paid out before any dividends can be distributed to common shareholders.

Consolidated Cost

The total cost that combines figures from various subsidiaries of a parent company into one aggregated total.

Unrealized Inventory Profits

Profits that result from internal sales within a company or conglomerate but have not been realized through sales to external parties.