Future benefits foregone when one option is chosen over another are called:
A) Decision Costs
B) Opportunity Costs
C) Relevant Costs
D) Sunk Costs
E) None of the above

Question

Quizplus · Accepted Answer

Opportunity costs represent the benefits an individual, investor, or business misses out on when choosing one alternative over another. These are not recorded in the financial books but are important in decision-making.

Future Benefits Foregone When One Option Is Chosen Over Another