Accounting Systems Typically Record Opportunity Costs as Assets and Treat

question 14

True/False

Accounting systems typically record opportunity costs as assets and treat them as intangible items on the financial statements.Opportunity costs are not reflected in the accounting system-they are what did not happen.

---

Definitions:

Lose-Lose Strategy

A conflict resolution outcome in which all parties end up being worse off than before they started negotiating.

Arbitration

A form of dispute resolution where a neutral third party (the arbitrator) makes a decision to resolve a dispute, typically binding on the parties.

Compromise

The act of finding a middle ground between conflicting needs, desires, or demands.

Compromising Style

A conflict resolution approach where each party gives up something to reach a mutually acceptable solution.