An opportunity cost is:
A) the benefit given up or sacrificed when one alternative is chosen over another.
B) the cost to market, distribute, and service a product or service.
C) the total product cost of goods completed during the current period and transferred to finished goods inventory.
D) the difference between sales revenue and cost of goods sold.

Question

Quizplus · Accepted Answer

An opportunity cost is the benefit that is given up or sacrificed when one alternative is chosen over another. It represents the alternative ways that resources could have been used if they were not used for a particular purpose. Therefore, A is the best choice as it provides a clear definition of an opportunity cost. B, C, and D are not correct as they do not relate to the concept of opportunity cost.

An Opportunity Cost Is