Think about all of the choices you make on a day-to-day basis: everything from driving versus riding a bike to school or deciding where to have lunch. Pick three decisions you have made today. Identify an out-of-pocket and opportunity cost for each decision.
Answer to relevant QuestionsExplain the difference between a direct cost and an indirect cost. Take a look at your purse or wallet. Name two direct costs of making your purse or wallet. Name two indirect costs of making it.Explain the difference between service companies, merchandising companies, and manufacturing companies.What are prime costs? Why have they decreased in importance over time?Refer to M1-5. Assume that you have the following information about Top Shelf’s costs for the most recent month:Depreciation on factory equipment ...... 1,800Depreciation on delivery trucks ......... 800Wood used to build ...Seth’s Skateboard Company incurs the costs listed in the table below. Required: Use an X to categorize each of the following costs. You may have more than one X for each item.
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