The Benefit Foregone by NOT Choosing an Alternative Course of Action

question 8

Multiple Choice

The benefit foregone by NOT choosing an alternative course of action is referred to as a(n) :

• A) opportunity cost.
• B) sunk cost.
• C) variable cost.
• D) incremental cost.

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Definitions:

Program Evaluation and Review Technique

The Program Evaluation and Review Technique (PERT) is a project management tool used to estimate the duration of a project by analyzing the time required for various tasks.

Project Management

The practice of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria at a specified time.

Central Limit Theorem

A statistical theory that states that, given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples will be approximately equal to the mean of the population.

Simulation

The use of a computer model to replicate the behavior of complex systems in order to study their properties or predict outcomes under different scenarios.