A cost important to the decision-making process but NOT recorded in conventional accounting records is called a(n):

Question

Quizplus · Accepted Answer

Opportunity cost is a cost that is not recorded in conventional accounting records, but it is important to consider in decision-making as it represents the cost of forgoing the best alternative choice. Sunk cost, standard cost, and direct cost are all recorded in accounting records.

A Cost Important to the Decision-Making Process but NOT Recorded