Trinh Quits His $80 000-A-Year Job to Become a Full-Time

question 98

Multiple Choice

Trinh quits his $80 000-a-year job to become a full-time volunteer at a museum.The opportunity cost of his decision is:

• A)0 since he will no longer be earning a salary.
• B)depends on the 'going rate' of museum employees.
• C)at least $80 000.
• D)the value he attributes to the joy of working at a museum.

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Definitions:

Management Planning

The process of setting objectives and outlining a strategy to achieve those objectives within an organization.

Standard Costs

The predetermined costs associated with manufacturing a product or providing a service, used as benchmarks for measuring performance.

Quality Control

The process of ensuring that products and services meet certain standards and are free from defects.

Direct Materials Cost

The cost of raw materials that are directly involved in the production of a product, easily traceable to the finished product.