An analyst wishes to determine the value of resources used by a proposed project. Which values should the analyst use to approximate opportunity costs?
A)Book values
B)Market values
C)Historical values
D)Accounting values plus an inflation adjustment

Question

Quizplus · Accepted Answer

Market values would be the best choice to approximate opportunity costs as they reflect the current value of the resources in the market. Book values, historical values, and accounting values plus an inflation adjustment may not accurately reflect the current market value of the resources.

An Analyst Wishes to Determine the Value of Resources Used