Opportunity cost(s):
A)of a resource with excess capacity is zero
B)should be maximized by organizations
C)are recorded as an expense in the accounting records
D)are most important to financial accountants

Question

Quizplus · Accepted Answer

Opportunity cost of a resource with excess capacity is zero because the resource is not being fully utilized, implying that there is no opportunity lost by using it for a particular purpose. Therefore, the opportunity cost in this scenario is considered to be zero. The other options are incorrect: B is incorrect because opportunity cost is about the cost of the foregone alternative, not about maximizing the cost per se. C is incorrect because opportunity cost is not a financial transaction that is recorded in accounting records. D is incorrect because opportunity cost is a concept that applies to all types of decision-making, not just financial accounting.

Opportunity Cost(s)