| D | Nonmanufacturing cost. | 2. | Prime cost and conversion cost share what common element of total cost? | A | Direct materials. | B | Direct labor.
Running head: OPPORTUNITY COST, THE VALUE OF THE BEST 1 ALTERNATIVE FORGONE IN MAKING ANY CHOICE Opportunity Cost, the Value of the Best Alternative Forgone in Making any Choice Authors Note This paper was prepared for Microeconomics OPPORTUNITY COST, THE VALUE OF THE BEST 2 ALTERNATIVE FORGONE IN MAKING ANY CHOICE Abstract This paper explores the economic principles of cost opportunity. “Scarcity of resources is one of the more basic concepts of economics. Scarcity necessitates trade-offs, and trade-offs result in an opportunity cost. While the cost of a good or service often is thought of in monetary terms, the opportunity cost of a decision is based on what must be given up (the next best alternative) as a result of the decision. Any decision that involves a choice between two or more options has an opportunity cost.” Alternate decisions based on wants and needs are valued in a way to “every choice that has an opportunity cost and opportunity costs affect the choices people make.
1. Which of the following is not a basic question that each economy must answer? A) Which resources are scarce? B) For whom shall the goods be produced? C) How shall goods be produced?
What about a too low estimate? 2. Calculate Midland’s firm-wide WACC. Make sure you explain clearly your method and your choice of inputs. In particular, is Midland’s choice of market risk premium appropriate, and if not, what recommendations would you make and why?
The category given the maximum point value in the Baldrige award is: Which of the following is not an assumption of the basic economic-order quantity model? Counting items to ensure an order is correct, is an example of approach actually schedules in detail each resource using the setup and runtime required for each order The assignment method is appropriate in solving problems that have the following characteristics Which of the following is not a principle of work-center scheduling? Which of the following according to Goldratt is not a component of production cycle time? According to Goldratt and Fox, a useful performance measure to treat inventory is Goldratt's rule of production scheduling include all but Which of the following would not be considered in deciding how far to minimum-cost schedule (crash) a project? The advantage(s) of the network planning models over the Gantt chart is (are) that The idea of the Value Density calculation is According to Hau Lee, which of
ANS: A value of the product to consumers. DIF: 1 SECTION: 1 TYPE: M 41. The height of the demand curve shows a. how much each buyer in the market is willing to pay. b. the willingness to pay of the marginal buyer. c. the maximum price all buyers will pay for a product.
Quality control costs may be a direct cost of the Manufacturing Department, but an indirect cost of an individual job. Answer: True Difficulty: 2 Objective: 1 Terms to Learn: job 3. Cost objects may be jobs, products, or customers. Answer: True Difficulty: 1 Objective: 1 Terms to Learn: job 4. The cost driver of an indirect cost is often used as the cost-allocation base.
University of Lethbridge - Department of Economics ECON 1010 - Introduction to Microeconomics Instructor: Michael G. Lanyi Lab #1 - Chapter 1 & 1A 1) Which of the following is the best definition of economics? A) The study of how consumers spend their income. B) The study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices. C) The study of how consumers and producers meet each other at the market. D) The study of how a provincial government allocates tax dollars.
(b) If the depreciation policy was expressed in terms of a % rate, what range of rates would apply? Freehold Buildings Plant and machinery Motor vehicles (a)For freehold buildings the group employs straight line depreciation. For plant and machinery the group employs reducing balance. For motor vehicles the group
IAS 38 requires that an intangible asset will be recognized by an entity when it satisfies both of the following criteria: 1. It is probable that any future economic benefit associated with the item will flow to the entity. 2. The item has a cost or value that can be measured with reliability. Also, according to IAS 38.51-57 the Internally Generated intangible Assets, if an entity can distinguish the research phase from the development phase of an internal project to create an intangible asset, the intangible asset should be recognized only in the development phase.