Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 82

For the following questions, circle the best response.

An opportunity cost is

a. income forgone because an opportunity to earn income was not pursued.

b. never relevant in decision making.

c. a cost that cannot be avoided.

d. a cost that has been incurred and that cannot be reversed by some future action.

e. present in every decision-making situation.