Which Statement Is True of an Opportunity Cost

question 31

Multiple Choice

Which statement is true of an opportunity cost?

• A)It is the cost of a special order option.
• B)It reduces the possibility of accepting a particular course of action.
• C)It is the potential benefit as a result of following an alternative course of action.
• D)It is a variable cost.

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Definitions:

Mean

The calculation of the arithmetic average involves adding up all the values in a series and dividing the total by the quantity of numbers.

Rounded

The process of approximating a number to a specified degree of precision, often to the nearest whole number.

Rounding Rules

Guidelines used in mathematics and statistics for reducing the number of digits in a numeric value according to certain criteria, typically to make the value simpler or more intuitive.

Rounded

The process of adjusting numerical values to a specified degree of accuracy, typically to make them simpler or more manageable.