Use the Information Below to Answer the Following Question

question 128

Multiple Choice

Use the information below to answer the following question.
Fact 1.3.1 Costs Soar for London Olympics
The regeneration of East London, the site of the 2012 Olympic Games, is set to add extra £1.5 billion to taxpayers' bill.Source: The Times, London, July 6, 2006
-Refer to Fact 1.3.1.The cost of regenerating East London an opportunity cost of hosting the 2012 Olympic Games .

• A)is; if the property taxes of people living in East London increase
• B)is not; because few people attending the 2012 Olympics will spend much time outside Olympic venues
• C)is not; because regenerating East London is an unnecessary expense
• D)is; if the costs of the East London regeneration is equal to a significant percentage of the total amount spent by London taxpayers to host the 2012 Olympics
• E)is; if the regeneration of East London would not occur unless London hosted the 2012 Olympics

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Definitions:

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodic basis, rather than being updated continuously.

First-In, First-Out

An inventory valuation method where the goods first purchased or produced are also the first to be sold, impacting the cost of goods sold and inventory value.

Average Cost

A calculation used in finance and economics that divides the total cost of production by the number of goods produced, yielding the cost per unit.

Perpetual Inventory System

An accounting method that records inventory updates continuously as sales and purchases occur.