Opportunity costs are reflected in a profit-and-loss statement.

Question

Quizplus · Accepted Answer

Opportunity costs are not reflected in a profit-and-loss statement. Profit-and-loss statements only reflect the monetary costs and revenues associated with a particular decision or action. Opportunity costs refer to the potential benefits or profits that could have been gained if a different decision or action had been taken, and they are not recorded as an actual expense or revenue in a profit-and-loss statement.

Opportunity Costs Are Reflected in a Profit-And-Loss Statement