The option that is foregone 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

Quizplus · Accepted Answer

Opportunity cost refers to the benefit that is forgone when an asset is used for a specific project or purpose. It represents the next best alternative that could have been pursued if the asset was not utilized for the current project. Salvage value refers to the value that an asset will generate if it is sold at the end of its useful life, while sunk cost refers to the costs that have already been incurred and cannot be recovered. Wasted value and erosion are not related to the concept of opportunity cost.

The Option That Is Foregone So That an Asset Can