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    Question

    Opportunity cost

    is:
    A A sunk cost Correct Answer Incorrect Answer
    B The cost of the next best alternative foregone Correct Answer Incorrect Answer
    C A fixed cost Correct Answer Incorrect Answer
    D A variable cost Correct Answer Incorrect Answer
    E The cost of capital Correct Answer Incorrect Answer

    Solution

    Opportunity cost is a fundamental economic concept. It represents the value of the next best alternative that is given up when a decision is made. It is not recorded in accounting books but is crucial for management decision-making.

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