The Potential Benefits Lost by Taking a Specific Action When

question 132

Multiple Choice

The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n) :

• A)Alternative cost.
• B)Sunk cost.
• C)Out-of-pocket cost.
• D)Differential cost.
• E)Opportunity cost.

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Definitions:

Benefits

Advantages or gains received by individuals or groups, often from employment or insurance policies.

Obligations

Legal or moral duties to perform or refrain from performing certain acts, often arising from contracts, laws, or ethical principles.

Owners

Individuals or entities that hold the legal right or title to property, possessions, or an entity.

Industry

A particular form or branch of economic or commercial activity.