Opportunity cost is best defined as☐ a. the opportunity to earn a profit that is greater than the one currently being made.○ b. the amount that is given up when choosing an activity that is not as good as the nextbest alternative.○ c. the amount given up when choosing one activity over the next best alternative.○ d.the amount given up when choosing one activity over all other alternatives.

Opportunity Cost:Opportunity cost is a fundamental concept in economics that refers to the value of…

Answered: Opportunity cost is best defined as ☐…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1MC: ______ are the costs associated with not choosing the other alternative. A. Sunk costs B....

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The following profit payoff table was presented in Problem 1: The probabilities for the states of nature are P(s1) = 0.65, P(s2) = 0.15, and P(s3) = 0.20. What is the optimal decision strategy if perfect information were available? What is the expected value for the decision strategy developed in part (a)? Using the expected value approach, what is the recommended decision without perfect information? What is its expected value? What is the expected value of perfect information?
please i just need a multiple choice answer Opportunity cost can best be defined as the a. value of the best alternative foregone when the alternative at hand is chosen. b. cost of the resources used to produce a good or service. c. money cost of a good or service. d. money cost plus interest on money borrowed to buy a good or service.
What concept relates to the proportionate savings in costs gained when levels of production are increased: A) Accounting profit. B) Economies of scale. C) Marginal costs. D) Barriers to entry. E) Economic profit. The benefit lost when choosing one option precludes receiving the benefits from an alternative option was referred to as: A) Irrelevant costs. B) Lost costs. C) Alternative costs. D) Opportunity costs. E) Sunk costs.
________ are the costs associated with not choosing the other alternative.A. Sunk costsB. Opportunity costsC. Differential costsD. Avoidable costs
Label each of the following statements as either true (“T”) or false (“F”). An opportunity cost is the potential benefit that is lost by taking a specific action when two or more alternative choices are available.
Which of the following would be considered as a limiting factor to maximize the profit? O a. Book value O b. Fixed cost Oc. Contribution d. Sales
______ are the costs associated with not choosing the other alternative. A. Sunk costs B. Opportunity costs C. Differential costs D. Avoidable costs
In incremental analysis, only relevant costs are considered when making a decision among alternatives. Explain what relevant costs are. Would these include only variable costs? Explain.
Future costs that differ across alternatives are: a. Opportunity costsb. Sunk costsc. Relevant costsd. Variable costs
1) Cost-volume relationship states that maximum profit is reached by maximizing revenue. Select one: True O False
A cost that cannot be changed because it arises from a past decision and is irrelevant to future decisions is a. An uncontrollable cost. d. An opportunity cost. b. An out-of-pocket cost. e. An incremental cost. c. A sunk cost.
As the level of activity increases, how will a mixed cost in total and per unit behave? A) B) (C) D) E) In Total Increase Increase Increase Decrease Decrease Multiple Choice Choice A Choice B Choice C Choice D Per Unit Decrease Increase No effect Increase No effect

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