An Example of an Opportunity Cost Not Measured in the Accounting

question 79

Multiple Choice

An example of an opportunity cost not measured in the accounting costs of a business firm is

• A) payment for the cost of raw materials.
• B) wages paid to labor.
• C) labor services provided by the firm's owner without reimbursement.
• D) electric utility expense.
• E) marketing costs that had little payoff.

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Definitions:

Ratify

The act of officially approving a treaty, agreement, or legislation, making it formally valid.

Three-Fifths Compromise

An agreement reached during the 1787 United States Constitutional Convention that counted three out of every five slaves as a person for purposes of representation and taxation.

Extra Representation

Additional or surplus representation, often in the context of legislative bodies where certain regions or groups receive more representatives than others based on various factors.

Slaves

Individuals forced into labor without pay and denied freedom, a practice seen in many societies historically and, in some forms, continuing today.