Ramona Decides to Spend Two Hours Taking a Nap Rather

question 22

Multiple Choice

Ramona decides to spend two hours taking a nap rather than attending her classes.Her opportunity cost of napping is

• A)the value of the knowledge she would have received had she attended class.
• B)the $24 she could have earned if she had worked at her job for those two hours.
• C)the value of her nap minus the value of attending class.
• D)nothing,since she valued sleep more than attendance at class.

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Definitions:

Activity-Based Costing

A technique for allocating costs to products or services based on the resources they consume.

Receiving Calls

The act or process of accepting incoming telephone calls, often in a business context for customer service.

Time-Driven

A method or model that assigns resource costs based on the actual time units consumed by an activity or process.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their use of resources.