If one fails to account for opportunity costs in decision making,then applying the cost-benefit principle will be flawed because
A) the benefits will be overstated.
B) the costs will be understated.
C) the benefits will be understated.
D) the costs will be overstated.
E) both benefits and costs will be understated.

Question

Quizplus · Accepted Answer

Opportunity costs represent the value of the next best alternative foregone. If they are not considered, the total costs of a decision will be understated, leading to a flawed application of the cost-benefit principle.

If One Fails to Account for Opportunity Costs in Decision