Which of the following best distinguishes an opportunity cost from an outlay cost?
A) Opportunity costs are recorded, whereas outlay costs are not.
B) Outlay costs are speculative in nature, whereas opportunity costs are easily traceable to products.
C) Opportunity costs have very little utility in practical applications, whereas outlay costs are always relevant.
D) Opportunity costs are sacrifices from foregone alternative uses of resources, whereas outlay costs are cash outflows.

Question

Quizplus · Accepted Answer

Opportunity costs represent the benefits of the next best alternative that is foregone, while outlay costs are actual cash expenditures.

Which of the Following Best Distinguishes an Opportunity Cost from an Outlay