Which of the Following Is Not True with Regard to Opportunity

question 39

Multiple Choice

Which of the following is not true with regard to opportunity costs?

• A) They are the benefits forgone by selecting one alternative over another.
• B) They are relevant.
• C) They are sometimes difficult to quantify.
• D) They have already occurred in the past.

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Definitions:

Inventory Returns

Items sent back to the manufacturer or supplier from the buyer due to defects, excess orders, or other reasons.

Perpetual Inventory System

An immediate inventory recording method in accounting that leverages computerized point-of-sale and enterprise asset management software to track purchases or sales.

Quick Ratio

A liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Current Ratio

A financial metric used to evaluate a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.