A Person Will Choose to Work Another Hour If the Benefit

question 98

Multiple Choice

A person will choose to work another hour if the benefit of doing so is:

• A)greater than the opportunity cost.
• B)exactly equal to the opportunity cost.
• C)less than the opportunity cost.
• D)greater than the benefit of the previous hour worked.

---

Definitions:

Target Costing

A pricing method that involves subtracting a desired profit margin from a competitive market price to determine allowable production costs.

Cross Functionality

Describes a scenario where individuals or groups from different specialties or departments work together towards a common goal.

Customer Value

The perception of what a product or service is worth to a customer versus the possible alternatives, often influencing their buying decision.

Re-Engineering

Refers to the radical redesign of business processes for significant improvement in performance, efficiency, and quality.