Which of the Following Statements Regarding "Opportunity Costs" Is True

question 76

Multiple Choice

Which of the following statements regarding "opportunity costs" is true?

• A) These costs are recorded routinely by most modern cost accounting systems.
• B) These costs relate to the benefit lost or foregone when a chosen option (course of action) precludes the benefits of an alternative option from being realized.
• C) These costs are generally deductible for federal income tax purposes in the U.S.
• D) In terms of most short-run decisions, they are irrelevant.
• E) They are usually considered a sunk cost associated with one or more decision alternatives.

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