Q503
Cash flows that could be generated from an owned asset by company but not use in project are classified as
A.
occurred cost
B.
mean cost
C.
opportunity costs
AnswerD.
weighted cost
Answer: Option C
Solution
Answer: Option C
Solution:
Cash flows that could be generated from an owned asset by company but not use in project are classified as opportunity costs. Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another.