Opportunity cost is the loss due to forgoing one opportunity to select another one alternative.
In this case, the forgone alternative is the full-time employment and other expenses for the term when the alternative chosen is to be in school. In this case, room and board expenses remain the same whether in school or working full time and thus not considered. The part-time amount earned while at school is subtracted as it would be compensated be during full time employment.
Therefore;
Opportunity cost = $20,000+$10,000+$1,000-$8,000 = $23,000
The ‘SMART’ technique a tool for effective goal setting. The acronym SMART stands for Specific, Measurable, Attainable, Realistic, and Time-bound, all of which are requisites for goals. The goal “to sell a combination of six refrigerators, stoves or dishwashers to earn a bonus” is specific, measurable, attainable and realistic because Michelle has done this before. Yet the goal is not time-bound. The length of time it is required to meet is not specified in the goal.
Kingbird Corp
A.
Dr Account Receiveable $722,500
Cr Sales Revenue $722,500
B.
Dr cash $708,940
Cr Account receivable $708,940
C.
Dr Bad debt expense $14,220
($22,740-$8,520)
Cr Allowance for Doubtful Account $14,220
Answer:
The correct answers are:
1. Nonexcludable, nonrivalrous
2. excludable, nonrivalrous
3. excludable, rivalrous
4. excludable, rivalrous
5. excludable, rivalrous
6. excludable, rivalrous
Explanation:
A good is excludable when ordinary people haven't paid for it can be prevented from using that good. It becomes a rival if the consumption of a person in that good diminishes another one's consumption of it. Rivalry and excludability are related. A very simple example of it is when an apple cannot be shared with an unlimited number of people.
