Examples of opportunity costs include:
A)forgone contribution margin.
B)lost sales.
C)lower production.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the cost of a missed opportunity, i.e., the value of the best alternative foregone in choosing one option over another. All the options listed in the question (forgone contribution margin, lost sales, and lower production) represent potential opportunities that were not pursued due to choosing a different option. Therefore, all the answer choices are correct examples of opportunity costs.

Examples of Opportunity Costs Include