Helen Gives Up the Opportunity to Bake 40 Cakes for Each

question 128

Multiple Choice

Helen gives up the opportunity to bake 40 cakes for each room she paints; Josh can paint one room in the time it takes him to bake 60 cakes.The opportunity cost of a cake for Josh is

• A)painting one room
• B)painting 1/40 of a room
• C)painting 1/60 of a room
• D)painting 2/3 of a room
• E)painting 3/2 of a room

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Definitions:

Commercial Substance

A concept in accounting indicating that a transaction has caused a significant change in the economic circumstances of a business.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its life.

Timberlands

Timberlands refer to forested land suitable for timber harvesting and logging operations.

Accumulated Depletion

The total amount of natural resource extraction that has been charged as an expense to a company's profit and loss account over a period.