The opportunity cost of making a component pa there is no alternative use is: 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 pa there is no alternative use is: 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

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2DQ: Which of the following costs would be classified as variable and which would be classified as fixed,...

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Question

15
The opportunity cost of making a component part in a factory with excess capacity for which
there is no alternative use is:
the variable manufacturing cost of the component.
the total manufacturing cost of the component.
the fixed manufacturing cost of the component.
zero.

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