The Time Cost Incurred by Consumers Who Must Find Substitute

question 16

Multiple Choice

The time cost incurred by consumers who must find substitute products after a ban is placed on some good or service is an example of a(n)

• A) capital cost
• B) fixed cost
• C) explicit cost
• D) operating expense
• E) implicit cost

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Definitions:

Work in Process

Items or materials that are partially completed in the manufacturing process, situated between raw materials and finished goods.

Finished Goods

Goods that are available for sale after completing the production process.

Work in Process

Inventory items that are currently in the midst of the production process, not yet completed goods.

Standard Costs

Predetermined costs for products or services, used for budgeting and measuring performance against actual costs.