Jasmine Is Trying to Decide What to Do with Her

question 63

Multiple Choice

Jasmine is trying to decide what to do with her time this summer. She could take two summer courses that will cost her $1,500 each. Alternatively, she could work as an intern, earning $5,000. What is the opportunity cost of taking summer classes?

• A)$1,500
• B)$5,000
• C)$7,500
• D)$3,500

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Definitions:

Cost-Reduction Emphasis

A strategic focus of an organization on identifying and implementing ways to decrease expenses and costs to improve profitability.

Differential Analysis

The process of comparing the costs and benefits of alternative decisions or investments to determine the best option.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation, amortization, or impairment costs.

Annual Costs

The total amount of expenditures associated with the ongoing operations of a business or project over the course of a year.