Asked by
Antara Mandal
on Nov 19, 2024
Verified
Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.The salary that Mark earns at his present employ is:
A) a variable cost
B) a fixed cost
C) a product cost
D) an opportunity cost
Opportunity Cost
The cost of forgoing the next best alternative when making a decision.
Product Cost
The total expense involved in creating a product, including direct materials, direct labor, and manufacturing overhead.
Variable Cost
Expenses that vary directly with the amount of output or the scale of operations.
- Determine and discriminate between different forms of costs like sunk costs, period costs, product costs, and opportunity costs.
Verified Answer
KG
Learning Objectives
- Determine and discriminate between different forms of costs like sunk costs, period costs, product costs, and opportunity costs.