The Value of the Best Alternative Sacrificed to Obtain Something

question 26

Multiple Choice

The value of the best alternative sacrificed to obtain something you want is referred to as

• A)explicit cost.
• B)opportunity cost.
• C)marginal cost.
• D)sunk cost.

Understand the legal differences between sales and bailments.

Recognize the implications of the UCC on merchants, including the modifications to common law rules.

Understand the differences between auctions with reserve and auctions without reserve.

Identify and describe the characteristics of a firm offer.

---

Definitions:

Planning Budget

A budget prepared for a specific level of activity used as a tool for planning and control in business.

Net Operating Income

A financial metric representing the amount of profit generated from a company's ordinary operations, excluding expenses from interest and taxes.

Tenant-Days

A metric used in property management to describe the cumulative number of days all tenants occupy a space within a defined period.

Static Budget

A financial plan that does not change over the period it covers, even if actual figures deviate from the planned amounts.