Select the incorrect statement concerning opportunity costs.
A) Opportunity costs are relevant costs.
B) Opportunity costs are cumulative.
C) Opportunity costs are future-oriented.
D) Opportunity costs are not recorded in the books.

Question

Quizplus · Accepted Answer

Opportunity costs represent the benefits a business misses out on when choosing one alternative over another. They are not cumulative but rather specific to each decision made. They are indeed relevant, future-oriented, and not recorded in financial books, making all other options correct except for B.

Select the Incorrect Statement Concerning Opportunity Costs