An opportunity cost: Group of answer choices a. should initially be recorded as an asset b. is classified as manufacturing overhead c. is the cost of a new product proposal d. is the potential benefit that may be obtained by alternative course of action

Question

Anaya Stephens

Business

21 March, 00:55

An opportunity cost: Group of answer choices a. should initially be recorded as an asset b. is classified as manufacturing overhead c. is the cost of a new product proposal d. is the potential benefit that may be obtained by alternative course of action

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Answers (2)

Know the Answer?

Martha Rangel · Answer 1

Correct option is D.

Explanation:

An opportunity cost is the potential benefit that may be obtained by following an alternative course of action.

Aileen Mcbride · Answer 2

Answer: d. is the potential benefit that may be obtained by alternative course of action

Explanation: Given that every resource can be put to alternative uses, every action, choice, or decision taken by an entity has an associated opportunity which is defined as the cost of an opportunity forgone or given up (and the loss of the benefits that could be received from that opportunity) to acquire or achieve something else. It can also be described as the most valuable forgone alternative. Therefore, it is the potential benefit that may be obtained by some alternative course of action.