The cost of a resource that may be relevant to an investment decision even when no cash changes hand is called a (an):
A) Sunk cost
B) Opportunity cost
C) Working capital
D) None of the above

Question

Quizplus · Accepted Answer

Opportunity cost refers to the cost of a resource that must be given up in order to obtain or utilize another resource. These costs are not necessarily monetary, but rather the benefits that could have been gained from the next best alternative.

The Cost of a Resource That May Be Relevant to an Investment