In Order to Determine Whether to Major in Economics,a Rational

question 26

Multiple Choice

In order to determine whether to major in economics,a rational individual compares the ________ of the decision.

• A) marginal benefit and marginal cost
• B) opportunity cost and the sunk cost
• C) positive benefits and normative costs
• D) normative benefits and positive costs
• E) self-interest and social-interest

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Definitions:

Overapplied Manufacturing Overhead

A situation where the amount of overhead allocated to products exceeds the actual overhead incurred.

Finished Goods Inventory

Products that have completed the manufacturing process and are ready to be sold.

Absorption Costing

An accounting method that includes all manufacturing costs, both direct and indirect, in the cost of a product.

Throughput Costing

An accounting method emphasizing the costs directly associated with producing goods, excluding indirect costs like manufacturing overhead.