The definition of profit opportunity cost is the cost of assigning a job to a facility that
A)does not result in having the best possible profit.
B)does result in having the best possible profit.
C)neither a nor b
D)both a and b

Question

Quizplus · Accepted Answer

Profit opportunity cost is the cost of not choosing the most profitable alternative. Therefore, it refers to the cost incurred when a facility is assigned a job that results in less profit than what could have been achieved if another alternative had been chosen. Option A correctly defines this concept, making it the best choice. Option B, on the other hand, incorrectly states that profit opportunity cost is the cost of choosing the best possible profit, which is not correct. Option C and D are both incorrect as they either do not define the concept at all or provide incorrect information.

The Definition of Profit Opportunity Cost Is the Cost of Assigning