In managerial accounting,what is the term used to describe the amount a firm could earn on its assets by putting them to their best alternative use?
A)cost of capital.
B)sunk cost.
C)marginal cost.
D)future cost.

Question

Quizplus · Accepted Answer

The term used to describe the amount a firm could earn on its assets by putting them to their best alternative use is called the cost of capital. This cost represents the opportunity cost of investing in one project instead of another. It is the minimum rate of return that a firm must earn on its investments in order to compensate its investors for the use of their money.

In Managerial Accounting,what Is the Term Used to Describe the Amount