Deciding to use a resource in a particular way causes a manager to forgo the opportunity to use the resource in optional ways.

Question

Quizplus · Accepted Answer

This statement describes the concept of opportunity cost, which is the value of the next best alternative foregone when a choice is made. When a manager decides to allocate a resource in one way, they are giving up the opportunity to use it in other ways that could have generated different benefits or outcomes.

Deciding to Use a Resource in a Particular Way Causes