What Would Be the Opportunity Cost of a Child Using

question 232

Multiple Choice

What would be the opportunity cost of a child using a coupon for a free ice cream cone?

• A)the dollar cost of the cone she selected 
• B)the other types of ice cream she could have selected 
• C)zero - because the good was not a durable good 
• D)zero - because the good was free

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Definitions:

Predetermined Overhead Rate

A calculated rate used to allocate manufacturing overhead costs to individual units of production, typically based on estimated costs and activity levels.

Direct Labour Cost

The expense incurred for workers who are directly involved in the production of goods or services.

Manufacturing Costs

Costs directly associated with the production of goods, including materials, labor, and factory overhead.

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.