Which of the following is not an opportunity cost in terms of money management decisions? Multiple Choice losing time when engaged in comparison shopping lost interest earnings resulting from purchases reduction of worry from good saving habits forgoing income as a result of spending time in school buying on credit resulting in a reduction of future discretionary income
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Opportunity cost refers to the value of the next best alternative that is forgone when making a decision. In money management, this often involves considering what is sacrificed in terms of time, money, or resources when choosing one option over another. Show more…
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Which of the following best describes why people are impatient to make a purchase? Many items are not available for purchase in the future. People consider their opportunity costs carefully when making a decision. Consumption today is valued more than consumption in the future. There is nothing else that money can be spent on in the future. Opportunity cost is all of the alternatives we have in making a decision the condition that exists when there are limited wants and unlimited resources the value of the next-best alternative when a decision is made; it's what is given up. the price that is paid when purchasing something you do not really want. Which of the following best describes why people are impatient to make a purchase? Many items are not available for purchase in the future. People consider their opportunity costs carefully when making a decision. Consumption today is valued more than consumption in the future. There is nothing else that money can be spent on in the future. One of the reasons people may find it difficult to save is because the benefits of saving are experienced immediately. interest is earned when you save. they have less money to spend now. they have more money to spend in the future. The information, alternatives, and opportunity cost present at the time of making a decision are known as benefits of making a decision. implicit alternatives. trade-offs. explicit alternatives.
Akash M.
Imagine that you have won $100 in the state lottery. you have a choice between spending the money on shopping now or putting it away in a savings account for one year. you decide to spend the money now on shopping. thus, you will lose the interest that you could have earned by saving the money. the lost interest is the_____ cost of spending money now.
William F.
High School Business 5 points Imagine that you have won $100 in the state lottery. You have a choice between spending the money on shopping now or putting it away in a savings account for one year. You decide to spend the money now on shopping. Thus, you will lose the interest that you could have earned by saving the money. The lost interest is the opportunity cost of spending money now.
Jennifer S.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
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