# When a buyer purchases an item on credit, there is a chance he/she will pay interest charges in the future. True False

Answer: True- buyer has chance to pay credit balance off before interest rates apply with in the month, however if balance is not paid full before bill date then interest is applied.

## Related Questions

Compute the standard cost for one hat, based on the following standards for each hat: Standard Material Quantity: 3/4 yard of fabric at \$4.00 per yard Standard Labor: 1 hour at \$5.75 per hour Factory Overhead: \$2.90 per direct labor hour

The standard cost for one hat is \$ 11.65

Explanation:

The standard cost of a hat is determined after consider all the manufacturing costs components in it. Based on the data available, it is calculated as under:

Standard Material  3/4 yards @ \$ 4 per yard                               \$ 3.00

Standard Labor      1 hour at \$ 5.75 per hour                               \$ 5.75

Factory overhead   \$ 2.90 per direct labor hour                         \$ 2.90

Standard cost for one hat                                                           \$ 11.65

The factory overhead has been considered at one hour, which is the direct labor hour in the standard calculation.

You have driven 500 miles on a vacation and then you notice that you are only 25 miles from an attraction you hadn’t known about, but would really like to see. In computing the opportunity cost of visiting this attraction you had not planned to visit, you should include:__________. a. both the cost of driving the first 500 and the next 25 miles.
b. the cost of driving the first 500 miles, but not the cost of driving the next 25.
c. the cost of driving the next 25 miles, but not the cost of driving the first 500.
d. neither the cost of driving the first 500 miles nor the cost of driving the next 25 miles.

c. the cost of driving the next 25 miles, but not the cost of driving the first 500.

Explanation:

500 miles already have been driven and all the cost incurred before is considered to be sunk cost for the decision to be made. Any additional cost to change the decision or make the decision will be the opportunity cost of that event. In this example only 25 miles cost will be an opportunity cost of visiting the attraction never been visited before.

An organization in which the management builds a commitment to learning, works to generate ideas with impact, and works to generalize ideas with impact is creating a(n) question 9 options: focused organization. learning organization. evolving atmosphere. customer-focused organization. 360-degree training structure.