The option that is forgone so that an asset can be utilized by a specific project is referred to as which one of the following?
A) Salvage value
B) Wasted value
C) Sunk cost
D) Opportunity cost
E) Erosion

Question

The option that is forgone so that an asset can be utilized by a specific project is referred to as which one of the following?
A) Salvage value 
B) Wasted value 
C) Sunk cost 
D) Opportunity cost 
E) Erosion

Quizplus · Accepted Answer

The option that is forgone so that an asset can be utilized by a specific project is called the opportunity cost. This is because when an asset is devoted to a particular project, the benefit that could have been gained from using that asset elsewhere is the opportunity cost. The other answer choices do not relate specifically to the concept of foregone opportunities in asset utilization.

The Option That Is Forgone So That an Asset Can