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What do wages paid to factory workers, interest paid on a bank loan, forgone interest, and the purchase of component parts have in common?.

Respuesta :

Wages paid to factory workers, interest paid on a bank loan, forgone interest, and the purchase of component parts are all opportunity costs.

What is Opportunity Cost?

  • Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options.
  • Opportunity costs are by definition invisible, making it simple to ignore them. Making smarter decisions requires an understanding of the possible opportunities lost when a company or person selects one investment over another.

Opportunity cost is a wholly internal expense that is only utilized for strategic consideration; it is not included in accounting profit and is not reported externally. It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.

Know more about Opportunity cost with the help of the given link:

https://brainly.com/question/12121515

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