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IMANET Exam CMA Topic 6 Question 99 Discussion

Actual exam question for IMANET's Certified Management Accountant exam

Question #: 99
Topic #: 6

[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?

AOpportunity cost.

BSunk cost.

CIncremental cash flow.

DNet initial investment.

Show Suggested 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).

by France at Sep 14, 2024, 09:37 PM

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Ceola

4 days ago

Opportunity cost, for sure. It's like the hidden price tag on the thing you're choosing to do. Gotta consider what you're missing out on, you know?

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Earlean

5 days ago

I think it's B) Sunk cost, because it's the cost that has already been incurred.

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Devora

6 days ago

I agree with Alfred, opportunity cost is the maximum benefit forgone.

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Alfred

8 days ago

The answer is A) Opportunity cost.

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Tamesha

9 days ago

Ooh, this one's a tricky one. I'm going with option A - opportunity cost. Gotta love those economic terms, am I right?

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Elvera

4 hours ago

I agree, option A - opportunity cost is the correct answer.

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Nicolette

21 days ago

Opportunity cost? Sounds like a fancy way of saying 'what I could have done instead'. Guess that's what I get for skipping Economics class!

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Judy

2 days ago

I see, so it's important to consider opportunity cost when making decisions.

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Sue

5 days ago

Exactly, it's all about weighing the benefits of your choices.

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Marcos

8 days ago

So it's like the value of the next best alternative that you didn't choose.

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Fernanda

13 days ago

Yeah, opportunity cost is basically what you give up when you choose one option over another.

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