Q402
An investment of money in idle inventory, in place of investing same amount of money somewhere else is an example of
A.
offshore cost
B.
outsource cost
C.
in-source cost
D.
opportunity cost
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
An investment of money in idle inventory, in place of investing same amount of money somewhere else is an example of opportunity cost. Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another.