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IMANET Exam CMA Topic 6 Question 99 Discussion

Actual exam question for IMANET's CMA exam

Question #: 99
Topic #: 6

[All CMA 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

2 months 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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Peter

1 months ago

I always try to weigh the opportunity cost before making a decision.

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Colton

1 months ago

Exactly, it's important to think about what you're giving up.

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Cecilia

1 months ago

Opportunity cost.

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Earlean

2 months ago

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

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Devora

2 months ago

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

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Alfred

2 months ago

The answer is A) Opportunity cost.

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Tamesha

2 months 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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Miles

1 months ago

Definitely, understanding opportunity cost helps in making better decisions.

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Von

2 months ago

It's all about weighing the benefits of one choice against the benefits of another.

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Tammara

2 months ago

Yeah, opportunity cost is a fundamental concept in economics.

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Elvera

2 months ago

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

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Nicolette

3 months 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 months ago

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

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Sue

2 months ago

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

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Marcos

2 months ago

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

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Fernanda

2 months ago

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

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