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| Q. |
An opportunity cost is the cost of |
| A. | lost business |
| B. | unplanned new business |
| C. | obtaining new business opportunities |
| D. | the next best alternative course of action |
| Answer» A. lost business | |
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Cost and Management Accounting and Financial ManagementDiscussion
Aman Shukla
1 year ago
answer -> D. the next best alternative course of action
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Aman Shukla
1 year ago
by this definition
Opportunity cost is the value of the next best alternative that is forgone when a decision is made to pursue a particular course of action. It represents the benefits that could have been obtained by choosing the alternative option. In other words, it is the cost of the missed opportunity.
Opportunity cost is the value of the next best alternative that is forgone when a decision is made to pursue a particular course of action. It represents the benefits that could have been obtained by choosing the alternative option. In other words, it is the cost of the missed opportunity.
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