Opportunity cost must be considered in decisions involving
A) budgeting.
B) financial accounting.
C) CVP analysis.
D) resources that have alternative uses.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the best alternative forgone when making a decision. This applies to situations where resources are limited and have alternative uses. Therefore, decisions involving resource allocation must consider opportunity cost. A, B, and C may require financial analysis but do not necessarily involve considering opportunity cost.

Opportunity Cost Must Be Considered in Decisions Involving