Select the correct statement regarding opportunity costs.
A) Opportunity costs need not be considered in decision making.
B) Opportunity costs are not recorded in a firm's financial accounting records.
C) Opportunity costs represent sunk costs.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Opportunity costs represent the benefits an individual, investor, or business misses out on when choosing one alternative over another. These costs, while crucial for making informed decisions, are not tangible expenses that are recorded in financial accounting records. They are theoretical costs of what is foregone when making a choice.

Select the Correct Statement Regarding Opportunity Costs