The revenue that is forgone from an alternative use of an asset, such as cash, is called
A)differential profit
B)sunk cost
C)differential revenue
D)opportunity cost

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefit that is missed or given up when an investor, individual, or business chooses one alternative over another. It represents the potential gains from those alternative uses of resources, like cash, that are not pursued.

The Revenue That Is Forgone from an Alternative Use of an Asset