Hans Can Do 4 Loads of Laundry and Type 6

question 110

Multiple Choice

Hans can do 4 loads of laundry and type 6 pages per hour. Heidi can do 12 loads of laundry and type 8 pages per hour. Hans's opportunity cost of doing one load of laundry is _____

• A) equal to typing 12 papers.
• B) equal to typing 8 papers.
• C) equal to typing 1 1/2 pages.
• D) equal to typing 2/3 of a page.
• E) impossible to compute without additional information.

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Definitions:

Cost Of Merchandise Sold

The cost that is reported as an expense when merchandise is sold.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the basic profitability of a company's core business activities.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management.

LIFO

"Last In, First Out," an inventory valuation method where the latest goods purchased are the first to be sold.