Opportunity Cost Is Usually

question 186

Multiple Choice

Opportunity cost is usually

• A) a standard cost.
• B) a potential benefit.
• C) a sunk cost.
• D) included as part of cost of goods sold.

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Definitions:

Operating Capacity

The maximum output that a business can produce in a given period under normal conditions, influenced by its resources and operational constraints.

Notes Payable

Short-term or long-term liabilities in the form of written promises to pay a specified amount with interest by a certain date.

Fixed Assets/Sales Ratio

A financial metric that indicates how efficiently a company is using its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits, often used to make informed business decisions.