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aleksandr82 [10.1K]
3 years ago
15

1. Understanding opportunity cost You work as an assistant coach on the university swim team and earn $13 per hour. One day, you

decide to skip the hour-long practice and go to the local carnival instead, which has an admission fee of $9. The total cost (valued in dollars) of skipping practice and going to the carnival (including the opportunity cost of time) is .
Business
1 answer:
dusya [7]3 years ago
5 0

Answer:

Total cost = $22

Explanation:

Below is the calculaton:

The per-hour earning = $13 per hour

The admission fee of carnival  = $9

In order to find the total cost, just add the per hour earning and fee of carnival.

Thus, total cost = Admission fee + Earning from assisting the swim team

Total cost = $9 + $13

Total cost = $22

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The expectation of costs producing an economic benefit beyond the current year or within the normal course of an operating cycle determines whether to capitalize or expense the costs.  When an item of expenditure is capitalized, it means that the expense recognition is delayed.  When the cost is expensed, it is treated as an expense in the income statement, whereas a capitalized cost is taken to the balance sheet, with only the depreciation expense portion recognized as expense for the period.

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