The Opportunity Cost of Attending a University for a Year

question 96

Multiple Choice

The opportunity cost of attending a university for a year is measured by:

• A)​the tuition fees incurred.
• B)​the size of the student loans the student becomes responsible for.
• C)​the sum of all expenditures on rent, food, books, and tuition incurred during the school year.
• D)​the value of the best opportunity or opportunities foregone in order to enroll for the year.

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Definitions:

Direct Labor Variance

The discrepancy between the expected (budgeted) cost of direct labor and the actual cost incurred during a production period.

Direct Labor Time Variance

The difference between the estimated time to produce a good and the actual time taken, often used in cost accounting.

Actual Costs

Actual costs are the expenses that a company incurs for producing goods or services, including materials, labor, and overhead, as opposed to estimated or budgeted costs.

Standard Costs

The predetermined costs of manufacturing a product or providing a service, used as benchmarks against actual costs.