Opportunity Costs Are

question 30

Multiple Choice

Opportunity costs are:

• A) Benefits foregone from one project because another project is chosen
• B) Irrelevant
• C) The same as sunk costs
• D) Easy to value

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Definitions:

Net Loss

The amount by which expenses exceed revenues over a specific period, indicating a negative financial performance.

Target Profits

The specific amount of net income a company aims to achieve within a certain time frame.

Variable Expenses

Costs that vary in direct proportion to changes in the level of activity or production volume.