Which of the Following Costs Are Part of a Firm's

question 24

Multiple Choice

Which of the following costs are part of a firm's opportunity costs? I. costs for resources bought in markets
II) costs for resources the firm owns
III) costs for resources supplied by the owner

• A) I and II
• B) I and III
• C) I only
• D) I, II, and III

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Definitions:

Equivalent Units

A concept used in cost accounting to denote the amount of completed units that could have been produced given the total amount of direct materials and labor consumed.

Materials Requisitions

Documents or requests used within a company to authorize the retrieval or usage of materials from inventory for production purposes.

Process Cost System

An accounting system that accumulates manufacturing costs and then assigns them to a large number of identical or similar units of output, common in continuous manufacturing environments.