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:

Inventory

The total of all goods available for sale or use, including raw materials, work-in-progress, and finished goods.

Perpetual Inventory

A system of accounting for inventory that records the sale or purchase of inventory immediately through computerized systems.

Periodic Inventory

An accounting method where inventory is physically counted at specific intervals to determine the cost of goods sold and ending inventory.

Transactions

The act of buying, selling, or exchanging goods, services, or financial assets in the business world.