Suppose You Pre-Ordered a Non-Refundable Movie Ticket to X-Men: Days

question 212

Multiple Choice

Suppose you pre-ordered a non-refundable movie ticket to X-Men: Days of Future Past.On the day of the movie you decide that you would rather not go to the movie.According to economists, what is the rational thing to do?

• A)Since the cost of the movie ticket is a sunk cost, it should not influence your decision.Your decision should be based solely on whether you want to see the movie or not.
• B)You should not waste resources.Since you have paid for the ticket you should watch the movie.
• C)Your should go to the movie to minimise your losses.
• D)You should go to the movie to maximise your utility.

Understand the principles of job order costing in both service and manufacturing businesses.

Identify the similarities and differences between job order costing in service and manufacturing sectors.

Develop skills to prepare journal entries for closing the factory overhead accounts.

Interpret the implications of debit and credit balances in factory overhead accounts.

---

Definitions:

Law Of Demand

A fundamental economic principle stating that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase, and vice versa.

Price

The quantity of currency projected, called for, or dispensed as remuneration for something.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specific period.

Maximum Wage Law

Legislation that sets an upper limit on the amount of money that can be earned by employees in a specific period.