If Wharton Corporation does NOT use one of its limited resources in the best possible way, the lost contribution to income could be called a(n):
A)variable cost
B)fixed cost
C)opportunity cost
D)sunk cost

Question

Quizplus · Accepted Answer

The lost contribution to income when a resource is not used in the best possible way is known as opportunity cost. It is the cost of the next best alternative foregone. Option A and B are types of costs that are not relevant to the scenario, and sunk cost (Option D) is a cost that has already been incurred and cannot be recovered.

If Wharton Corporation Does NOT Use One of Its Limited