The forgone contribution of resources, into the revenues because of not using the resources, in next best use is classified as __________?
Correct answer: B. opportunity cost
- A. in-source cost
- B. opportunity cost
- C. offshore cost
- D. outsource cost
Explanation
Opportunity cost is the contribution or benefit sacrificed when a resource is used for one purpose instead of its next best alternative. It is therefore a relevant cost in many decisions.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The costs such as book value of old machines are $25000 can be a classified as an example of ____________?
The fourth step in decision making process is ____________?
The type of outcomes, which can never be measured in numerical terms in books of accounts are classified as _________?
The relevant costs are classified in relevance concepts as ____________?
The difference that exists between total revenues, can be earned from two different alternatives is termed as ________?
As compared to irrelevant cost, the occurrence of relevant costs must ___________?