An analyst wishes to determine the value of resources used by a proposed project.Which values should the analyst use to approximate opportunity costs?
A)book values
B)market values
C)historical values
D)Accounting values plus an inflation adjustment

Question

Quizplus · Accepted Answer

The best choice to approximate opportunity costs would be market values, as they represent the current value of a resource that could be sold or put to use in an alternative project. Book values and historical values may not accurately reflect the current value of a resource, and accounting values plus an inflation adjustment may not provide an accurate estimate of the opportunity cost.

An Analyst Wishes to Determine the Value of Resources Used