Cyber Monday 2023! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: CM25OFF
Welcome to Pass4Success

- Free Preparation Discussions

IMANET Exam CMA Topic 1 Question 14 Discussion

Actual exam question for IMANET's Certified Management Accountant exam
Question #: 14
Topic #: 1
[All Certified Management Accountant Questions]

The maximum benefit forgone by using a scarce resource for a given purpose and not for the next-best alternative is called?

Show Suggested Answer Hide Answer
Suggested Answer: A

An opportunity cost is the maximum benefit forgone by using a scarce resource for a given purpose and not for the next-best alternative. In capital budgeting, the most basic application of this concept is the desire to place the company's limited funds in the most promising capital project(s).


Comments

Currently there are no comments in this discussion, be the first to comment!


Save Cancel