The opportunity costs of a decision may include each of the following types of costs EXCEPT
A)out-of-pocket financial costs.
B)forgone financial costs.
C)sunk costs.
D)nonfinancial costs.

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered, so they are not relevant to a decision going forward. The other types of costs listed - out-of-pocket financial costs, forgone financial costs, and nonfinancial costs - are all potential opportunity costs that should be considered when making a decision.

The Opportunity Costs of a Decision May Include Each of the Following