Tommy Spends Most of His Monthly Budget on $3 Video

question 248

Multiple Choice

Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of Pokemon cards.The opportunity cost to Tommy of an extra packet of Pokemon cards is

• A)one video game rental.
• B)two video game rentals.
• C)the cost of the Pokemon cards.
• D)he does not incur an opportunity cost.

---

Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Pen Sets

Writing instruments, such as pens, that are sold together as a set, often presented in a case or package.

FIFO Method

Stands for First In, First Out, an accounting method for valuing inventory where the oldest items in stock are sold or used first.

Ending Inventory

The final amount of products on hand at the close of an accounting period, reflecting the inventory that was not sold.