The Seller of a Product Has No Idle Capacity and Can

question 74

Multiple Choice

The seller of a product has no idle capacity and can sell all it can produce at $39 per unit.Outlay cost is $9.What is the opportunity cost,assuming the seller sells internally?

• A) $9
• B) $30
• C) $39
• D) $48

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Definitions:

Equipment

Tangible property used in the operation of a business that is not intended for sale, typically having a useful life longer than one year.

Credit Side

The right side of a financial ledger, where increases in liabilities, equity, and revenue, and decreases in assets and expenses are recorded.

Chart Of Accounts

A numbering system of accounts that lists the account titles and account numbers to be used by a company.

Account Balance

The difference between the debits and credits recorded in an account, representing the net value at a point in time.