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Management · Q378

Management Accounting

Graduate and Post Graduate · Management · question 378

Q378

Forgone contribution of resources, in to revenues because of not using resources, in next best use is classified as

A.
in-source cost
B.
opportunity cost
Answer
C.
offshore cost
D.
outsource cost

Answer: Option B

Solution

Answer: Option B
Solution:
Forgone contribution of resources, in to revenues because of not using resources, in next best use is classified as opportunity cost. Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services.