The value of benefits foregone by selecting one decision alternative over another is a(n)
A)unavoidable cost.
B)incremental benefit.
C)differential revenue.
D)opportunity cost.

Question

Quizplus · Accepted Answer

The value of benefits foregone by selecting one decision alternative over another is known as opportunity cost. The concept of opportunity cost is important in decision-making as it helps in weighing the cost of different alternatives. Therefore, the best choice is option D, which is opportunity cost.

The Value of Benefits Foregone by Selecting One Decision Alternative