DE26-16 The concept of opportunity cost applies to all business decisions for which there are alternative courses

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DE26-16 The concept of opportunity cost applies to all business decisions for which there are alternative courses of action. For example, in Exhibit 26-3, page 1066, the opportunity cost of rejecting the special sales order is the $11.000 of operating income that ACDelco would forgo il it rejects the special order. 1. Now consider the Chazz example. In Exhibit 26-7, page 1070.

a. What is the opportunity cost of manufacturing the shirts?

b. What is the opportunity cost of manufacturing the slacks?

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Accounting

ISBN: 9780130906991

5th Edition

Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones

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