An opportunity cost:A) Is an unavoidable cost because it remains the same regardless of the alternative chosen.B) Requires a current outlay of cash.C) Results from past managerial decisions.D) Is the potential benefit lost by choosing a specific alternative course of action among two or more.E) Is irrelevant in decision making because it occurred in the past.

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Verania Carrillo · Accepted Answer

Final Answer : D, Explanation :  Opportunity cost is the potential benefit that is lost by choosing one alternative over another. It is an important factor to consider in decision making as it helps to weigh the benefits and drawbacks of each alternative. Option A is incorrect as opportunity cost is not an unavoidable cost, but rather a potential benefit that is lost. Option B is incorrect as it refers to an actual cost, not an opportunity cost. Option C is incorrect as opportunity cost is not related to past managerial decisions. Option E is incorrect as opportunity cost is relevant in decision making as it helps to evaluate the potential benefits and drawbacks of each alternative.

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