A University Offers a Free Shuttle Service Around Campus

question 79

Multiple Choice

A university offers a free shuttle service around campus. The opportunity cost of the shuttle service to the university is equal to:​

• A)​zero, since it is free to students who want to ride.
• B)​the wages paid to the shuttle drivers.
• C)​the wages paid to the shuttle drivers, plus the gasoline expenses.
• D)​the highest valued alternative use of the resources devoted to the shuttle program.

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Definitions:

Segment Information

Refers to financial data reported separately for different divisions or segments within a company, often required by accounting standards to help users of financial statements better understand the company's performance.

Financial Statements

Reports that summarize the financial performance and financial position of a company, including the balance sheet, income statement, and statement of cash flows.

Disclosed

Information that has been revealed, reported, or made known to the public or relevant authorities.

Reportable Segment Sales Revenue

The revenue generated from sales within a specific segment of a business that must be reported separately in financial statements according to accounting standards.