Recall Application 1, "Don't Forget the Costs of Time and Invested

question 146

Multiple Choice

Recall Application 1, "Don't Forget the Costs of Time and Invested Funds," to answer the following questions.
-According to the application,if this year Betty spends $100,000 of her own money on materials, the interest rate is 5%, has living expenses of $20,000 and could have made $50,000 in her former line of employment, then Betty's opportunity cost of operating the business this year is:

• A) $155,000.
• B) $150,000.
• C) $50,000.
• D) $55,000.

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Definitions:

Advertising

The activity or profession of producing advertisements for commercial products or services, aimed at influencing the buying behavior of consumers.

Cost Driver

A factor that causes the cost of an activity or process to change, such as labor hours or machine hours.

Delivery Truck

A vehicle designed specifically for transporting cargo, particularly goods to be delivered to consumers or businesses.

Litres of Fuel

A measure of volume used to quantify fuel use, typically in vehicles or machinery.