When a decision is made among a number of alternatives,the potential benefit that is lost by choosing one alternative over another is the:

Question

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Opportunity cost is the potential benefit that is lost by choosing one alternative over another. Realized cost refers to the actual cost incurred and does not necessarily have to do with the benefit of the alternative not chosen. Conversion cost relates specifically to the cost of converting raw materials into finished goods. Accrued cost refers to expenses that have been incurred but have not yet been paid. Therefore, the best choice is B, opportunity cost.

When a Decision Is Made Among a Number of Alternatives,the