Accounting systems typically record opportunity costs as assets and treat them as intangible items on the financial statements.Opportunity costs are not reflected in the accounting system-they are what did not happen.

Question

Quizplus · Accepted Answer

Opportunity costs are not recorded as assets because they are not tangible items. They are also not reflected in the accounting system because they refer to the value of the alternative opportunity that was foregone.

Accounting Systems Typically Record Opportunity Costs as Assets and Treat