Costs forgone when an individual or organization chooses one option over another are
A)budgeted costs.
B)sunk costs.
C)historical costs.
D)opportunity costs.

Question

Quizplus · Accepted Answer

Opportunity costs refer to the costs forgone when an individual or organization chooses one option over another. This is the best choice as it accurately reflects the concept being described. Budgeted costs refer to planned expenses, sunk costs refer to costs that have already been incurred and cannot be recovered, and historical costs refer to costs that have already been incurred and recorded in past accounting records.

Costs Forgone When an Individual or Organization Chooses One Option