What Is Opportunity Cost

question 5

Multiple Choice

What is opportunity cost?

• A) a benefit that is difficult to accurately trace to a cost object
• B) a cost that increases as output increases and decreases as output decreases
• C) a cost that decreases as output increases and increases as output decreases
• D) a benefit given up or sacrificed when one alternative is chosen over another

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Definitions:

Core Values

Fundamental beliefs or guiding principles that shape an organization's culture and decision-making, influencing how it conducts business and interacts with stakeholders.

Competitive Advantage

A unique advantage a company has over its competitors that allows it to generate greater sales or margins.

Business Portfolio Analysis

A technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units (SBUs) as though they were a collection of separate investments.

Growth Opportunities

Potential scenarios or strategies that may lead to an increase in sales, market share, or business expansion.