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Which of the Following Would Be Categorized as an Opportunity

question 285

Multiple Choice

Which of the following would be categorized as an opportunity cost?
A.not being able to spend your $10,000 savings if you sink the money in your business
B.the cost of purchasing supplies for your house-cleaning business
C.the cost of purchasing auto insurance for your dry-cleaning delivery business


Definitions:

Spare Parts Store

A business or location that specializes in selling replacement parts and components for machinery, vehicles, or other equipment.

Underapplied Overhead

Refers to the situation when the actual factory overhead costs are more than the overhead costs applied to a product based on the predetermined rate.

Overapplied Overhead

A situation where the estimated manufacturing overhead cost is more than the actual overhead incurred during a period.

Value Chain

A model that describes the full range of activities needed to create a product or service, from initial conception through the various phases of production to the final customer.

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