Opportunity costs are always recorded as expenses in the accounts of an organization.

Name: Opportunity costs are always recorded as expenses in the accounts of an organization.
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Question

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Opportunity costs are not recorded as expenses in the accounts of an organization because they do not involve any cash outflows. They are simply the potential benefits that are foregone when choosing one option over another. However, they are considered in decision making and planning processes.

Opportunity Costs Are Always Recorded as Expenses in the Accounts