The amount of income that would result from an alternative use of cash is called
A) differential income
B) sunk cost
C) differential revenue
D) opportunity cost

Question

Quizplus · Accepted Answer

The amount of income that would result from an alternative use of cash is called opportunity cost. This is because when a decision is made to use cash for a certain purpose, it means that the opportunity to use that cash for an alternative purpose is foregone, and the income that could have been generated from that alternative use is the opportunity cost.

The Amount of Income That Would Result from an Alternative