The opportunity cost of making a component part in a factory with excess capacity for which there is no alternative use is: Multiple Choice the variable manufacturing cost of the component. the total manufacturing cost of the component. the fixed manufacturing cost of the component. zero.

The opportunity cost of making a component part in a factory with excess capacity for which there is no alternative use is: Multiple Choice the variable manufacturing cost of the component. the total manufacturing cost of the component. the fixed manufacturing cost of the component. zero.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1CMA

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Question

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

Multiple Choice

the variable manufacturing cost of the component.
the total manufacturing cost of the component.
the fixed manufacturing cost of the component.
zero.

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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