'Opportunity cost' is the contribution to operating profit that is forgone by not using a limited resource in its next best optional use.

Question

Quizplus · Accepted Answer

This is the correct definition of opportunity cost, which is a fundamental concept in economics and business decision-making. It refers to the cost of choosing one option over another, and it takes into account the benefits that could have been obtained from the forgone alternative. In other words, opportunity cost is the value of what is given up in order to pursue a particular choice.

'Opportunity Cost' Is the Contribution to Operating Profit That Is