What is the nature of an opportunity cost?
A)It is always variable.
B)It is a potential benefit.
C)It is included as part of cost of goods sold.
D)It is a sunk cost.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the potential benefit that is forgone when choosing one option over another. It is not always variable, as it may remain constant depending on the situation. It is not included as part of cost of goods sold, as it is not an actual expense but rather a theoretical concept. It is also not a sunk cost, as it involves potential future benefits rather than past expenses.

What Is the Nature of an Opportunity Cost