Opportunity cost of making a component part, Accounting Basics

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Opportunity cost of making a component part

The opportunity cost of making a component part in a factory with excess capacity for which there is no alternative use is:

A) the variable manufacturing cost of the component.

B) the total manufacturing cost of the component.

C) the fixed manufacturing cost of the component.

D) zero.

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Accounting Basics: Opportunity cost of making a component part

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Accounting Basics: Opportunity cost of making a component part

Reference No:- TGS092480

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Interest rate compounded annually

Q : Record the acquisition cost of the machine

Q : Write-off method for recording uncollectible account

Q : Problem based on two-year lease

Q : Opportunity cost of making a component part

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Opportunity cost of making a component part

Reference No:- TGS092480

Recent Questions Asked Accounting Basics

Q : Interest rate compounded annually

Q : Record the acquisition cost of the machine

Q : Write-off method for recording uncollectible account

Q : Problem based on two-year lease

Q : Opportunity cost of making a component part

Q : Culture-factor in determining the communication structure

Q : Governmental fund financial statements

Q : Events in internal service fund

Q : Prepare journal entries in the capital projects fund

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