The Potential Benefit of One Alternative That Is Lost by Choosing

question 131

Multiple Choice

The potential benefit of one alternative that is lost by choosing another is known as a(n) :

• A) Alternative cost
• B) Sunk cost
• C) Out-of-pocket cost
• D) Differential cost
• E) Opportunity cost

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Definitions:

Intangible Products

Products that cannot be touched or physically measured, including services, digital goods, and intellectual properties.

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within a company, focusing on converting materials and labor into goods and services as effectively as possible.

Inputs

The resources—such as labor, money, materials, and energy—that are converted into outputs.