Jim is planning on attending a football game.He paid $40 for the ticket.He will have to take the day off losing 8 hours of work.His hourly wage is $10.He estimates it will cost him around $20 for gas and parking at the game.Jim's accounting (out of pocket)cost of attending the game equals

Question

​Jim is planning on attending a football game.He paid $40 for the ticket.He will have to take the day off losing 8 hours of work.His hourly wage is $10.He estimates it will cost him around $20 for gas and parking at the game.Jim's accounting (out of pocket)cost of attending the game equals

Quizplus · Accepted Answer

Jim's accounting cost includes the $40 for the ticket, $80 for the 8 hours of work he will miss (8 hours x $10 per hour), and the $20 for gas and parking. Therefore, his accounting cost is $40 + $80 + $20 = $140. However, the question specifically asks for his "out of pocket" cost, which only includes the expenses he directly paid for, excluding the opportunity cost of missing work. Therefore, his out of pocket cost is $40 + $20 = $60. Choice C is the only option that matches the out of pocket cost.

​Jim Is Planning on Attending a Football Game

Jim Is Planning on Attending a Football Game