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  • Cost Accounting Test
  • Opportunity cost does not involve
Multiple choice

Opportunity cost does not involve

  1. cash inflow

  2. cash outflow

  3. cash outlay

  4. either (1) or (2)

  5. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Opportunity cost represents the benefit foregone by choosing one alternative over another. It is a notional cost and does not involve actual cash outflow.

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