Which of the following describes an opportunity cost?
A) A cost is not intended to vary with production or sales volume
B) Foregone benefit that could have been realized from the best alternative use of resources
C) Past payments for resources that cannot be changed by any current or future decision
D) Costs that can be changed quickly and easily

Question

Quizplus · Accepted Answer

Opportunity cost refers to the foregone benefit that could have been realized if the resources had been used in the best alternative way. It is the cost of the next best alternative that is not chosen.

Which of the Following Describes an Opportunity Cost