The opportunity cost of making a component part in a factory with excess capacity for which there is no alternative use is:
A. the total manufacturing cost of the component.
B. the fixed manufacturing cost of the component.
C. the variable manufacturing cost of the component.
D. zero.
Answer: D
You might also like to view...
The two most common purposes of business presentations are to
A) analyze and synthesize. B) regulate and validate. C) inform and persuade. D) illustrate and entertain. E) observe and comment.
According to brand asset valuator model, leadership brands show ________
A) high levels of energy, differentiation, relevance, knowledge, and esteem B) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still C) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still D) low levels on energy, differentiation, relevance, knowledge, and esteem E) high knowledge—evidence of past performance—a lower level of esteem, and even lower relevance, energy, and differentiation
Which statement is true?
A) All purchases should be recorded in a purchases journal. B) Closing and reversing entries will be found in the sales journal. C) Returned merchandise from a customer should be entered in the sales journal. D) All cash sales should be recorded in the cash receipts journal.
Under management contracting, a domestic firm ________
A) adopts management know-how from a foreign company B) manufactures the products of a foreign company C) exports its products to a foreign company D) provides financial capital to a foreign company E) exports management services to a foreign company