Suppose You Have an Hour Before Your Next Class Starts

question 62

Multiple Choice

Suppose you have an hour before your next class starts.You can either read a book, get something to eat, or take a nap.The opportunity cost of getting something to eat is

• A)the cost of what you eat
• B)the value of reading and sleeping
• C)the loss of value from not reading or sleeping
• D)the net benefit of sleeping for another hour
• E)impossible to determine because the most preferred alternative is not known

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Definitions:

Target Costing

A pricing method that involves subtracting a desired profit margin from a competitive market price to determine allowable production costs.

Cross Functionality

Describes a scenario where individuals or groups from different specialties or departments work together towards a common goal.

Customer Value

The perception of what a product or service is worth to a customer versus the possible alternatives, often influencing their buying decision.

Re-Engineering

Refers to the radical redesign of business processes for significant improvement in performance, efficiency, and quality.