Which of the following is NOT a correct description of opportunity cost of capital?

Question

Quizplus · Accepted Answer

Opportunity cost of capital is not typically included in accounting costs as it is an implicit cost, reflecting the income that could have been earned from alternative investment opportunities. A is correct as it represents the opportunity cost of capital in terms of the normal rate of return on investment. C and D are also correct as they represent the income lost by not investing in another firm and the implicit cost nature of opportunity cost of capital, respectively.

Which of the Following Is NOT a Correct Description of Opportunity