a benefit sacrificed when the choice of one action precludes taking an alternative course of action

Full Answer

Which is the sacrifice made in accepting an alternative course of action?

Opportunity Cost refers to in accepting an alternative course of action.

Is the benefit given up or sacrificed when one alternative is chosen over another?

Answer and Explanation: The benefits sacrificed when one alternative is chosen over another are referred to as: b) Opportunity costs.

Which cost is the value of benefit sacrificed in Favour of an alternative course of action?

Opportunity cost(ii) Opportunity cost is the value of benefit sacrificed in favour of an alternative course of action.

Is a characteristic of an activity or event that causes costs to be incurred by that activity or event?

a characteristic of an activity or event that causes costs to be incurred by that activity or event. An entity, such as a particular product, service, or department, to which a cost is assigned is called a cost object.

What is opportunity cost theory?

In microeconomic theory, the opportunity cost of a particular activity option is the loss of value or benefit that would be incurred (the cost) by engaging in that activity, relative to engaging in an alternative activity offering a higher return in value or benefit.

What is opportunity cost give example?

A student spends three hours and $20 at the movies the night before an exam. The opportunity cost is time spent studying and that money to spend on something else. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources (land and farm equipment).

Is measured in terms of sacrificed benefits from the next best alternative use of given resources?

Opportunity cost, in terms of production of a commodity refers to the resources which the producer has to sacrifice in terms of the next best alternative which could have been produced using them, in order to produce every unit of the given commodity.

What is sunk cost and incremental cost?

Sunk costs are historical costs which cannot be changed no matter what future action is taken. Sunk costs are easily identifiable as they will have been paid for, or are owed under a legally binding contract. Incremental costs are the changes in future costs and that will occur as a result of a decision.

Is the best alternative that you have sacrificed or forego?

Opportunity cost is defined as the cost of the next best alternative foregone. It represents the sacrifices that people must make due to the scarcity of resources.

Which of the following is a benefit of activity-based costing?

Activity-based costing provides a more accurate method of product/service costing, leading to more accurate pricing decisions. It increases understanding of overheads and cost drivers; and makes costly and non-value adding activities more visible, allowing managers to reduce or eliminate them.

What are the benefits of activity-based costing?

Activity-based costing gives managers more accurate production costs. This can help businesses make more informed decisions about which products to produce or help them find cheaper methods of production. It can also help when determining pricing for individual products.

What is variable cost economics?

A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company's production or sales volume—they rise as production increases and fall as production decreases.