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) given up by purchasing goods at a price lower than its total manufacturing cost
D) given up by choosing an alternate course of action

Question

Quizplus · Accepted Answer

Opportunity cost is the benefit that is given up by choosing an alternate course of action. It refers to the value of the next best alternative that must be foregone in order to pursue a certain action. Therefore, the correct answer is D.

Opportunity Cost Is the Benefit ________