Suppose You Take a Trip During the Mid-Semester Break

question 117

Multiple Choice

Suppose you take a trip during the mid-semester break.To determine the benefit of taking the trip,you

• A)must measure what the trip is worth to you and then subtract the cost of the trip.
• B)calculate the opportunity cost of the trip.
• C)measure what you are willing to give up to take the trip.
• D)calculate the value of the next best alternative forgone.
• E)determine the sunk cost of taking the trip.

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Definitions:

Estimated Cost

An approximation of the cost for goods or services, projected based on current information and past experience.

Retail Method

A pricing strategy used to estimate the value of a store's merchandise by considering the initial cost of inventory and its markup to retail price.

Cost To Retail Price

A pricing strategy where the selling price of an item is determined by adding a margin to its cost.

Retail Method

An accounting method used in the retail industry to estimate inventory value, based on the ratio of the cost of goods to the retail price.