The cost of not doing something is a(n):
A)out-of-pocket cost.
B)opportunity cost.
C)direct cost.
D)cost object.

Question

Quizplus · Accepted Answer

The cost of not doing something is known as opportunity cost. This is the cost of forgoing one option in favor of another. It is the value of the benefits that could have been gained by taking the next best alternative action. Out-of-pocket costs are the actual expenses incurred in performing an activity, direct costs are costs that can be easily traced back to a specific cost object (such as a product), and cost object is the item or product for which the cost is being calculated. None of these options accurately describe the cost of not doing something.

The Cost of Not Doing Something Is A(n)