The ________ of the investment is a cost recognized in particular situations but not recorded in financial accounting systems because it is an opportunity cost.
A)imputed cost
B)disputed cost
C)rejected cost
D)preferred costs
E)discouraged cost

Question

Quizplus · Accepted Answer

Imputed cost refers to an opportunity cost, which is the cost of investing in one alternative that must be forfeited in order to invest in a different alternative. It is not recorded in financial accounting systems as it is not an actual expense incurred, but rather a potential cost of the investment decision. The other options listed (B-E) do not accurately describe this concept.

The ________ of the Investment Is a Cost Recognized in Particular