Opportunity costs:

Question

Opportunity costs:

Quizplus · Accepted Answer

Opportunity costs are the benefits foregone from selecting an alternative course of action. They are not recorded in accounting records and do not result in cash outlay. It is important to consider opportunity costs when selecting among alternatives because it helps in making the best decision by evaluating the benefits and tradeoffs of each option. Maximizing opportunity costs is not the goal, but rather maximizing the benefits obtained from the chosen alternative. Therefore, the correct answer is C - opportunity costs are only considered when selecting among alternatives.

Opportunity Costs