In the context of new product planning and development,_____ costs refer not only to the alternative uses of funds spent on product failures but also to the time spent in unprofitable product development.
A)sunk
B)direct
C)acquisition
D)opportunity

Question

Quizplus · Accepted Answer

Opportunity costs refer to the benefits a company misses out on when choosing one alternative over another. In the context of new product planning and development, this includes not just the funds spent on unsuccessful products, but also the time invested in developing products that do not yield a profit, representing missed opportunities to invest those resources elsewhere.

In the Context of New Product Planning and Development,_____ Costs