CAF-5 · Chapter 14 · Question 2 of 10
In relevant costing, what term is used to describe "a benefit that will be lost by taking a specific course of action"?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Opportunity cost
Explanation
An opportunity cost is the value of a benefit sacrificed or lost when one course of action is chosen over the next best alternative. It is a critical component of relevant costing.
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