BICSI RTPM_003_V1 Q&A - in .pdf

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NEW QUESTION: 1
If the manufacturing company decides to use its excess manufacturing capacity for the motors, the contribution or net benefit that could have been obtained from other alternative uses is referred to as:
A. Separable costs.
B. Sunk costs.
C. Residual income.
D. Opportunity costs.
Answer: D
Explanation:
Opportunity cost is the net benefit that could be obtained from the best alternative use of a resource. Accordingly, it is the benefit forgone by using that resource in a particular way.

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