The value of resources used in an investment project should be measured in terms of their ____ cost.
A) acquisition
B) historical
C) opportunity
D) depreciated

Question

Quizplus · Accepted Answer

The opportunity cost measures the benefits foregone of the next best alternative use of the resources that are invested in the project. It takes into account the value of the resources in their best alternative use, which is a more accurate measure of their true value than historical or acquisition costs. Depreciated cost may be relevant for specific types of resources, such as equipment, but it is still based on historical cost and does not consider opportunity cost.

The Value of Resources Used in an Investment Project Should