Question

Cash flows that could be realized from the best alternative use of an owned asset are called​ ________. A. lost resale opportunities B. opportunity costs C. sunk costs D. incremental costs

Answer 1

Option B

Cash flows that could be realized from the best alternative use of an owned asset are called opportunity costs

Explanation:

Opportunity costs describe the gains an individual, investor or firm misses out on when picking one choice over another.  Bottlenecks are usually a basis of opportunity costs.  Analyzing opportunity costs can lead you to extra effective decision-making. Opportunity cost investigation also performs a vital role in preparing a business's capital structure.

Opportunity cost cannot forever be completely quantified at the time when a decision has arrived. Alternatively, the person performing the decision can only approximately predict the consequences of various dilemmas