If an Individual's Opportunity Cost of Commute Is $300 Per

question 67

Multiple Choice

If an individual's opportunity cost of commute is $300 per month and his monthly commuting time is 60 hours,his opportunity cost of time is ________.

• A) $5 per hour
• B) $10 per hour
• C) $30 per hour
• D) $60 per hour

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Definitions:

Depreciation Expense

Depreciation expense is the allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, age, or obsolescence.

Plant Asset

Long-term assets such as buildings, machinery, and equipment used in the operations of a business.

Allocated

The process of assigning or distributing resources, costs, or revenues to various accounts or cost centers based on a specific criterion or formula.

Accrued Expense

An accounting term for expenses that have been incurred but not yet paid, recorded on the books to reflect true financial position.