Which of the following costs is often important in decision making,but is omitted from conventional accounting records?
A)Fixed cost.
B)Sunk cost.
C)Opportunity cost.
D)Indirect cost.

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of the next best alternative foregone, and it is often not recorded in accounting records. It is an important cost to consider when making decisions because it represents the potential benefits that could have been gained had a different decision been made. Fixed cost, sunk cost, and indirect cost are all important costs to consider, but they are typically recorded in accounting records.

Which of the Following Costs Is Often Important in Decision