Identify a true statement about opportunity cost.
A) It excludes the value of customers never obtained.
B) It includes cost reductions not achieved in the company's supply chain.
C) It excludes the costs of sales not made.
D) It includes the benefits that a company obtains from an electronic commerce initiative.

Question

Quizplus · Accepted Answer

Opportunity cost includes the benefits or values that are forgone by choosing one alternative over another. This includes cost reductions not achieved in the company's supply chain when a different decision is made, as these cost reductions are benefits that could have been realized but were not due to the decision taken.

Identify a True Statement About Opportunity Cost