Answer (D) is correct . An opportunity cost is the maximum return that could have been earned on the next best alternative use of a resource. In this case, the lost profit on the rolls is an opportunity cost.
Answer (A) is incorrect because A deferrable cost is one that can be deferred to a future period.
Answer (B) is incorrect because A sunk cost is one that cannot be reversed since it is the result of a past irrevocable decision.
Answer (C) is incorrect because An avoidable cost is an ongoing cost that may be eliminated by ceasing to perform some economic activity or segment thereof or by improving the efficiency by which such activity is accomplished.
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Assuming that Gleason elects to produce the frozen dessert, the profit that would have been earned on the breakfast rolls is a(n)
