Opportunity costs are
A)considered to be fixed costs in the short-term.
B)another term for sunk costs.
C)costs that are controlled by most effective managers.
D)the value of benefits forgone when one decision alternative is selected over another.

Question

Quizplus · Accepted Answer

Opportunity costs are the benefits that are lost or forgone when one decision alternative is selected over another. This cost is a valuable concept for decision-making because it allows decision-makers to compare the benefits of alternatives and to make a choice that minimizes the opportunity cost. Therefore, the best choice is D.

Opportunity Costs Are