Opportunity Cost Is The

question 116

Multiple Choice

Opportunity cost is the:

• A)benefit that would have been available from the next best use of money.
• B)prime rate for large firms.
• C)unemployment rate.
• D)rate on standard savings accounts.

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Definitions:

Units-Of-Production Depreciation

A method of depreciation that allocates an asset's cost based on its usage, productivity, or units of production, rather than the passage of time.

Activity Bases

Criteria or units of measure used to allocate costs in activity-based costing, reflecting the extent to which cost drivers are used or consumed.

Total Variable Cost

The sum of all costs that vary directly with the level of production or output.

Fixed Cost Per Unit

The total fixed costs of production divided by the number of units produced, decreasing as production volume increases.