In making the decision whether to sell a product as is or process the product further, the expected income from selling the product as is may be defined as which of the following?
A)The opportunity cost of processing the product further
B)A sunk cost of processing the product further
C)The opportunity cost of selling the product as is
D)A limiting factor in processing the product further

Question

Quizplus · Accepted Answer

The expected income from selling the product as is represents the opportunity cost of processing the product further because it is the income that would be forgone if the decision is made to process the product instead of selling it immediately.

In Making the Decision Whether to Sell a Product as Is