An opportunity cost is
A)a cost that is charged against revenue in an accounting period.
B)the foregone benefit from the best alternative course of action.
C)the excess of operating revenues over operating costs.
D)the cost assigned to the products sold during the perioD.

Question

Quizplus · Accepted Answer

Opportunity cost is the cost incurred by selecting one option over the other, i.e., the foregone benefit of the best alternative course of action. It is not related to accounting, operating revenues or costs, or product costs.

An Opportunity Cost Is