Which of the Following Is NOT a Correct Description of Opportunity

question 412

Multiple Choice

Which of the following is NOT a correct description of opportunity cost of capital?

• A) It is the normal rate of return on investment.
• B) It is normally included in accounting costs.
• C) It is the income sacrificed by not investing in another firm.
• D) It is an implicit cost.

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Definitions:

Depreciation Expense

Depreciation expense is the allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, decay, or obsolescence.

Department Store

A retail establishment offering a wide range of consumer goods in different product categories known as "departments."

Profit Center

A department or unit within a company responsible for generating profits, with its performance measured based on its ability to produce excess revenue over expenses.

Controllable Revenues

Revenues earned by the profit center.