They are costs that will be incurred in the future.
They are inventory-related costs.
UNIT 4 QUIZ
Question 4. Question : Which of the following statements
regarding "opportunity costs"
is TRUE?
Student Answer:
These costs are recorded routinely by cost accounting
systems.
These costs relate to the benefit lost or foregone when a
chosen option (course of action) precludes the benefits from an
alternative option.
These costs are generally deductible for federal income tax
purposes.
In terms of most short-run decisions, they are irrelevant.