You Have Chosen to Take a Trip During Spring Break

question 110

Multiple Choice

You have chosen to take a trip during Spring Break.If you had not gone, you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

• A) the wages you would have earned from working.
• B) the lower grade earned by not studying.
• C) the wages you would have earned from working and the lower grade earned by not studying.
• D) the value of the trip.
• E) We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred.

---

Definitions:

Net Operating Income

The profit a business makes after deducting operating costs, but before removing interest and tax expenses.

Cost of Goods Sold

The direct financial burdens of producing the commodities a company sells, involving materials and labor input.

Work in Process Inventories

Goods that are partially completed in the manufacturing process but not yet ready for sale.

Standard Cost System

A cost accounting system that assigns costs to products based on predetermined standards for materials, labor, and overhead.