Opportunity cost is the benefit ________.
A)received by selling goods on behalf of another division
B)received by selling goods to one of the other divisions within the company
C)foregone by purchasing goods at a price lower than its total manufacturing cost
D)foregone by choosing an alternate course of action

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of choosing one option over the other. It is the cost of the next-best alternative that must be foregone in order to pursue a certain action. Therefore, the correct answer is D, which is the cost foregone by choosing an alternate course of action. A, B, and C do not accurately describe opportunity cost.

Opportunity Cost Is the Benefit ________