You Want to Sell Your Old IPad That You No

question 32

Multiple Choice

You want to sell your old iPad that you no longer use,and your cousin wants to give you $300 for it.If you decide to sell your iPad to your cousin,you'll have to pay $40 for shipping the iPad to your cousin.As a rational decision maker,you should:

• A)sell it because the marginal benefit is smaller than the marginal cost.
• B)not sell it because the marginal benefit is smaller than the marginal cost.
• C)sell it because the marginal benefit is greater than the marginal cost.
• D)not sell it because the marginal benefit is greater than the marginal cost.
• E)sell it because the marginal benefit is equal to the marginal cost.

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Definitions:

Direct Labor Cost

Direct labor cost refers to the expense incurred by a company for wages paid to workers directly involved in the production of goods or services.

Overapplied

A situation where the allocated costs in cost accounting exceed the actual costs.

Underapplied

A situation where the allocated costs are less than the actual costs incurred.

Materials Requisitioned

The process or document used to request and authorize the use or withdrawal of materials from inventory for production or other business needs.