Which of the Following Is an Example of Opportunity Cost

question 33

Multiple Choice

Which of the following is an example of opportunity cost?

• A) Renting an apartment near school
• B) Saving money instead of taking a vacation
• C) Organizing income tax records
• D) Purchasing automobile insurance
• E) Using a personal computer for financial planning

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Definitions:

Service Firms

Companies that provide intangible products or services to customers, as opposed to tangible goods.

Job Order Costing

An accounting method that accumulates costs based on individual jobs or orders, suitable for customized products.

Time Ticket

A record that tracks the amount of time an employee spends on various activities or tasks, used for billing clients or allocating labor costs.

Service Firms

Businesses that provide intangible products or services to consumers or other businesses.