The cost of a purchase or action measured in terms of its forgone alternative is its:
A) sunk cost.
B) money cost.
C) forgone cost.
D) opportunity cost.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that is given up when a decision is made. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

The Cost of a Purchase or Action Measured in Terms