The Opportunity Cost of a Resource Should Be Considered in Project

question 70

Multiple Choice

The opportunity cost of a resource should be considered in project analysis,unless:

• A) negative cash flows result from its use.
• B) the resource was purchased in a prior time period.
• C) the resource has been fully depreciated.
• D) the resource has no identifiable market value or alternative use within the firm.

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Definitions:

Assimilation

The incorporation of new events or knowledge into existing schemes.

Accommodation

The modification of existing schemes to permit the incorporation of new events or knowledge.

Scheme

An action pattern or mental structure that is involved in the acquisition and organization of knowledge.

Genotype

The genetic form or constitution of a person as determined by heredity.