The revenue that is forgone from an alternative use of an asset, such as cash, is called an opportunity cost.

Name: The revenue that is forgone from an alternative use of an asset, such as cash, is called an opportunity cost.
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This statement is true. Opportunity cost refers to the value of the next best alternative that must be given up in order to pursue a certain action. Therefore, the revenue that could have been earned if an asset was used in a different way represents an opportunity cost.

The Revenue That Is Forgone from an Alternative Use of an Asset