Use the Information Below to Answer the Following Questions

question 64

Multiple Choice

Use the information below to answer the following questions.
Jan runs a successful hairdressing salon in the CBD. The type of costs incurred in providing services to clients are:
i) Hairdressers' salaries
ii) Shampoo and Conditioner
(no individual records kept of usage)
iii) Colour and Perm Solutions
(individual records kept of usage per client)
iv) Electricity and Gas
v) Depreciation of equipment
-Refer to the information above. The indirect costs incurred in providing a haircut only to a client would be:

• A)all costs mentioned above.
• B)shampoo and conditioner, electricity and gas.
• C)electricity and gas and depreciation of equipment.
• D)shampoo and conditioner, electricity and gas, and depreciation of equipment.

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Hot Dog

A cooked sausage, traditionally grilled or steamed, and served in a partially sliced bun as a fast-food.

Hamburger

a popular food item consisting of a cooked patty of ground meat, usually beef, placed inside a sliced bread roll or bun.

Monthly Income

The total earnings received on a monthly basis from all sources such as employment, investments, and entitlements.