Opportunity Cost Is the __________ Alternative Forfeited When a Choice

question 154

Multiple Choice

Opportunity cost is the __________ alternative forfeited when a choice is made.

• A) least-valued
• B) most highly-valued
• C) most convenient
• D) most recently considered

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Definitions:

FOB Destination

A shipping term indicating that the seller bears the transport costs and retains ownership until the goods reach the buyer's location.

FOB Shipping Point

A term indicating that the buyer takes ownership and responsibility for goods at the point of departure from the seller's shipping dock.

Freight-Out

Refers to the cost associated with shipping goods to customers, a part of the selling expenses in accounting.

Periodic Inventory System

An inventory system that records inventory levels and the cost of goods sold at specific intervals, rather than continuously.