Which of the Following Is the Correct Opportunity Cost to Consider

question 18

Multiple Choice

Which of the following is the correct opportunity cost to consider if you are trying to choose one 3-hour elective course (A) over another 3-hour elective course (B) ?

• A)The tuition cost of a 3-hour course
• B)Your total tuition costs for the year with and without the course
• C)The information and learning from (B)that you will give up if you choose (A)
• D)The marginal costs of taking one more course

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Definitions:

Variance

The difference between planned or expected performance and actual performance, often analyzed in budgeting and performance management.

Liters

A metric unit of volume equal to 1,000 cubic centimeters, commonly used to measure liquids.

Standard Costs

These are predetermined costs of manufacturing a single unit or a number of units of a product during a specific period, based on expected material, labor, and overhead costs.

Price Variance

A variance that is computed by taking the difference between the actual price and the standard price and multiplying the result by the actual quantity of the input.