Which of the Following Is True of an Opportunity Cost

question 155

Multiple Choice

Which of the following is true of an opportunity cost?

• A) It is the income foregone by not using a resource in an alternative way.
• B) The higher the opportunity costs, the lower is the relevant cost.
• C) It is recorded as an expense in the accounting records.
• D) It is an unavoidable cost that cannot be changed no matter what action is taken.