What is an opportunity cost?

a.	The difference in total costs which results from selecting one choice instead of another.
b.	The profit forgone by selecting one choice instead of another.
c.	A cost that may be saved by not adopting an alternative.
d.	A cost that may be shifted to the future with little or no effect on current operations.

2. Costs that do not relate directly to a cost object are its

a.	marginal cost.
b.	indirect cost.
c.	sunk cost.
d.	target cost.

3. The nursing station on the fourth floor of Columbia Hospital for Women is responsible for the care of patients who have just given birth. The costs of drugs administered by the nurses to patients would be classified as

a.	direct costs.
b.	indirect costs.
c.	overhead costs.
d.	period costs.