The Revenue That Is Forgone from an Alternative Use of an Asset

question 68

Multiple Choice

The revenue that is forgone from an alternative use of an asset is called a(n) :

• A) opportunity cost.
• B) differential revenue.
• C) sunk cost.
• D) differential income.

Understand the significance and mechanics of responsibility accounting in managing performance.

Explain the function and importance of budgetary control in business operations.

Identify the roles and classifications of responsibility centers.

Assess and respond to ethical considerations in managerial decisions related to budgeting and performance evaluation.