The current market value of a previously purchased machine proposed for use in a project is an example of a(n)
A)sunk cost.
B)opportunity cost.
C)fixed cost.
D)inventoriable cost.

Question

Quizplus · Accepted Answer

The current market value of a previously purchased machine represents an opportunity cost because it is the value that could be obtained if the machine were sold or used elsewhere, rather than being used in the proposed project.

The Current Market Value of a Previously Purchased Machine Proposed