For Every Choice a Person Makes It Can Be Assumed

question 145

Multiple Choice

For every choice a person makes it can be assumed that

• A) the chooser has full knowledge of the situation.
• B) some opportunity cost was involved.
• C) there is a fifty-fifty chance the choice was the wrong one.
• D) a good is involved and satisfaction is gained.

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Definitions:

Conversion Cost

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.

Production Process

The sequence of operations or activities involved in converting raw materials and components into finished goods or services.

Process Costing

A costing method used for homogeneous products that are produced in a continuous process, allocating costs over the entire production run.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.