Which of the statements below is correct about opportunity costs
A)Always the same as variable cost.
B)An important consideration used for decision making.
C)Always relevant to decision making.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Opportunity costs are an important consideration used for decision making because they represent the value of the next best alternative foregone. While they are always relevant to decision making, they are not always the same as variable costs or relevant in every situation, such as sunk costs.

Which of the Statements Below Is Correct About Opportunity Costs