What Is the Definition of Opportunity Cost

question 108

Multiple Choice

What is the definition of opportunity cost?

• A)a cost that increases as output increases and decreases as output decreases
• B)a cost that does not increase as output increases and does not decrease as output decreases
• C)a benefit given up or sacrificed when one alternative is chosen over another
• D)a benefit that cannot be easily and accurately traced to a cost object

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Definitions:

Condition of Goods

The physical state or quality of items or products being sold, traded, or transported.

Quantity Received

The total number of units of a product or goods received from a supplier.

Supplies

Materials and items used in the day-to-day operations of a business, which may be considered either current assets or expenses.

Contra-Asset

An account that is used to reduce the balance of a related asset account, with the most common example being accumulated depreciation.