The Concept of Opportunity Cost Exists Because

question 91

Multiple Choice

The concept of opportunity cost exists because

• A)of scarcity.
• B)goods have different prices.
• C)of shortages.
• D)the value of services is hard to determine.

Differentiate between job order costing and process costing with respect to their application scenarios.

Understand the flow of costs in job order costing, including the recording of transactions related to raw materials, labor, and overhead.

Identify the methods and agencies involved in computing essential economic indicators.

Understand the basic concepts and types of unemployment.

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate overhead costs to products or job orders based on a certain activity base.

Automated Bandsaw

A machine equipped with a continuously looped, serrated blade for cutting materials, operated through computer or programmable logic controls.

Capacity

The maximum amount that something can contain or produce.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual units of output.