Opportunity costs for organizational resources:
A) are limited to the explicit cash flows involved.
B) are determined according to the marginal tax rate.
C) can involve no cash flows.
D) should not be determined for existing products.

Question

Quizplus · Accepted Answer

Opportunity costs can involve non-monetary resources such as time or human resources. It is important to consider these costs when making decisions to prioritize resource allocation. Existing products should also be evaluated for opportunity costs as decisions to continue investing resources into them may take away from potential opportunities for growth elsewhere.

Opportunity Costs for Organizational Resources