What is opportunity cost? Select one: O a. It is the cost of the worst opportunity when we choose one alternative over the next best alternative O b. It is the cost of the best opportunity when we choose one alternative over the next best alternative O clt is the benefit lost when we choose more than one alternative d. It is the benefit lost when we choose one alternative over the next best alternative

What is opportunity cost? Select one: O a. It is the cost of the worst opportunity when we choose one alternative over the next best alternative O b. It is the cost of the best opportunity when we choose one alternative over the next best alternative O clt is the benefit lost when we choose more than one alternative d. It is the benefit lost when we choose one alternative over the next best alternative

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 1MCQ: Which of the following is not a step in the short-run decision-making model? a. Defining the...

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The potential benefit of one alternative that is lost by choosing another is known as a. An alternative cost. d. An opportunity cost. b. A sunk cost. e. An out-of-pocket cost. c. A differential cost.
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.
Opportunity costs refer to – Group of answer choices The costs that happened in the past The benefit forgone when one alternative is selected over another The costs that do not differ among the decision alternatives The costs that can be avoided by selecting a particular course of action.
If the real cost of hedging is ______, then the hedging strategy was beneficial. Group of answer choices negative positive zero
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.
When comparing two mutually exclusive alternatives by the ROR method, if the rate of return on the alternative with the higher first cost is less than that of the lower first-cost alternative: (a) The rate of return on the increment between the two is greater than the rate of return for the lower first-cost alternative (b) The rate of return on the increment is less than the rate of return for the lower first-cost alternative (c) The higher first-cost alternative may be the better of the two alternatives (d) The lower first-cost alternative should be selected
Which of the following best describes an "opportunity cost"? Group of answer choices costs that were incurred in the past and cannot be changed The distribution of all products to be sold Expected future costs that differs among alternatives Benefits foregone by not choosing an alternative course of action
What would be a current example of differential costs where you had to choose between two alternatives?
One cost that is irrelevant in decision making is a sunk cost Group of answer choices True False
Which of the following is an irrelevant cost? Group of answer choices An avoidable cost An incremental cost A sunk cost An opportunity cost
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?
Which of the following statements is false? (You may select more than one answer.)a. Under some circumstances, a sunk cost may be a relevant cost.b. Future costs that do not differ between alternatives are irrelevant.c. The same cost may be relevant or irrelevant depending on the decision context.d. Only variable costs are relevant costs. Fixed costs cannot be relevant costs.