Question

Heston and Burton, CPA's, currently work a five-day week. They estimate that net income for the firm would increase by $75,000 annually if they worked an additional day each month. The cost associated with the decision to continue the practice of a five-day work week is an example of a(n)

Answer 1

Answer:

Opportunity cost.

Explanation:

Opportunity cost is an economics term that is used to describe the value or determinant to best forgone alternative in certain situations. In as much as every business model or dealings can never be measured in monetary terms because merit can also be determined through satisfaction gained and actual time spent on the job.

It is sometimes seen to fall in as individual perspective, this is seen as such because it is always different for every person in as much as our personality and different in likes and lifestyle affects it when it boils down to persons.

Economists also tag opportunity cost to be fundamental costs and are generally used for gaining a better understanding of a project.