Steve Has Two Choices for Taking Classes

question 36

True/False

Steve has two choices for taking classes. Each is three credits and meets three hours a week, so we assume they have equal monetary costs. If Steve chooses to take a modern dance class instead of an economics class, it must be that for Steve the opportunity cost of taking a modern dance class exceeds the opportunity cost of taking an economics class.

Prepare and adjust a trial balance.

Perform horizontal analysis of income statements.

Understand and classify increases and decreases in various types of accounts.

Calculate account balances given transaction data.

---

Definitions:

Conversion Costs

The costs incurred to convert raw materials into finished products, typically including labor and manufacturing overhead.

Factory Overhead

All indirect costs associated with manufacturing, including costs related to operating the factory except for direct materials and direct labor.

Direct Labor

The expense of salaries for workers directly engaged in creating products or delivering services.

Product Costs

Costs that are directly associated with the manufacturing of goods, including materials, labor, and overhead.