Maria Has to Choose Between Driving and Taking a Train

question 2

Multiple Choice

Maria has to choose between driving and taking a train to destination A. Traveling by train will cost her $400 and will take 4 hours. Driving to destination A takes 6 hours, and the required amount of gasoline costs $250. Her opportunity cost of time is $15 per hour.
-Refer to the scenario above.Maria should choose to ________.

• A) drive, as it will save her $120
• B) travel by train, because it is quicker
• C) drive, as it will give her a real saving of $150
• D) travel by train, as it will save her $30 in travel time

Recognize the process of rulemaking and enforcement in administrative agencies.

Differentiate between independent and executive agencies and their focus areas.

Understand the roles and limitations of the United States Congress and the President in relation to administrative agencies.

Comprehend the powers and limitations of administrative agencies, including rulemaking, adjudication, and enforcement.

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Definitions:

Conversion Cost

The combination of labor and manufacturing overhead costs required to convert raw materials into finished goods.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished goods.

FIFO Method

"First In, First Out," an inventory valuation method where goods first purchased or produced are sold first, affecting inventory cost and profits.

Process Costing

An accounting method used where costs are accumulated for a continuous process and then assigned to individual units of output.