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https://www.testbankshop.com Accounting for Decision Making and Control 9th Edition Zimmerman Test Bank Chapter 02 The Nature of Costs Multiple Choice Questions 1. Opportunity Costs: A. must never be negative B. may be found in financial statements (annual report) C. reflect the benefit of the next best alternative D. are pecuniary in nature E. none of the above 2. John invested $12,000 in the stock of Hyper Cyber Eight years later, Hyper Cyber's shares reached $125,000, but John held onto the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is $4,000. If the shares were sold and the proceeds invested in another investment, they would likely earn 5% per annum. Which of the following terms and values is correct? A. $125,000 is the opportunity cost of selling the shares today B. $12,000 is a sunk cost C. $250,000 is the opportunity cost D. $2000 is the opportunity cost E. None of the above 2-1 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.