Which of the following is defined as the cost or forgone opportunity of using an asset already in use by the firm, or a person already employed by the firm, in a new project?
A) Net working capital cost
B) Opportunity cost
C) Shortage cost
D) Cash cycle cost

Question

Quizplus · Accepted Answer

Opportunity cost refers to the cost or forgone benefit that would have been incurred if an asset or employee, already in use, was deployed for a different project or purpose. It represents the benefits a firm misses out on when choosing one alternative over another.

Which of the Following Is Defined as the Cost or Forgone