An opportunity cost is:
A)the foregone benefit of the path not taken.
B)an actual outlay of cash.
C)the initial investment required to pursue an opportunity.
D)a cost that cannot be traced to a specific cost object.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefits or returns that a person/organization could have received by choosing an alternative course of action. It is the cost of an alternative that must be forgone in order to pursue a certain action. Hence, option A, i.e., "the foregone benefit of the path not taken" is the correct answer.

An Opportunity Cost Is